CGT liability

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  • John60
    replied
    Thank you - very helpful. Unfortunately it seems I cannot claim an additional 12m exemption for refurbishment because of the length of time between purchase and moving in. At least I'm clear now.

    Leave a comment:


  • Gordon999
    replied
    This may help you : Helpsheet 283.

    https://www.gov.uk/government/public...sidence-relief

    Leave a comment:


  • John60
    replied
    I can't do that because I had PRR on the home I lived in until October 2015, and I can't claim it twice for that period

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  • Gordon999
    replied
    If the property has never been let out and all the council tax bills are in your name, , you should claim main residence for the entire period from 2013 to 2017 and exemption to capital gains tax.

    Leave a comment:


  • John60
    started a topic CGT liability

    CGT liability

    I'd like to check my understanding of my CGT liability on a property I purchased in May 2013 for £188k, with the intention of letting it.

    The property was in need of refurbishment, and over the first 18 months of ownership I spent £7k on replacing the kitchen, bathroom, cloakroom, flooring, boiler and repainting.

    My plans then changed and I decided to move into it as my main residence which I eventually did in October 2015.

    I lived there until November 2016 when I moved to a different part of the country. The property was then empty until sold in June 2017 for £317k, and so has never been let.

    in terms of calculating my CGT tax liability, is the following correct?

    - the gain is the selling price (minus selling and solicitor costs), less purchase price (plus stamp duty and solicitor costs)?
    - can the gain be further reduced by the £7k refurb costs?
    - having calculated the net gain I have an exemption period (as a proportion of the total period of ownership) from October 2015 to June 2017, this being the period whilst it was my main residence, plus the period after that, since the final 18m is exempt if it has been ever used as a main residence - correct?
    - Finally, I'm sure I read somewhere that the first 12m of the refurbishment can also be exempt from CGT liability, in which case CGT would be due only on the period May 2014 until October 2015 - is that correct?

    John

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  • Reply to tax / cgt question for renovating property
    by Gordon999
    If you purchased a building shell , and had the builder carry out the refurbishment work , then enter all expenses as an improvement in your records. You paid the builder by cheque and should have kept bank statements to show all payments .

    No need to break down the cost into operating...
    02-07-2022, 11:59 AM
  • tax / cgt question for renovating property
    by DroidEgg
    I purchased a shell of a house that was structurally sound but needed complete refurbishment. The house had been ransacked many items. eg All the radiators & copper pipe had been ripped from the walls.
    A builder completed all the work from start to finish. The final cost was an all-in job...
    02-07-2022, 10:33 AM
  • Reply to tax / cgt question for renovating property
    by jpkeates
    I'd suggest that based on that description, all of the work was probably capital.
    02-07-2022, 10:43 AM
  • Reply to CGT query
    by Gordon999
    I believe your solicitor has to prepare a Deed of Trust which transfers 60 % interest in the property from wife to you.

    You need to make clear to your solicitor that Deed is for HMRC only and not for registration at Land Registry

    After signing the Deed , you...
    01-07-2022, 16:51 PM
  • CGT query
    by vik238754
    Hello. Since 2013 my wife and I own a property as tenants in common where the beneficial interest split is 90% her and 10% me. We are now looking to sell the property. I have a large CGT loss and using the HMRC CGT calculator I have calculated that if I change the split to 70% me and 30% my wife...
    23-05-2022, 19:37 PM
  • Reply to CGT query
    by vik238754
    The existing declaration states 10:90 beneficial interest not legal interest
    01-07-2022, 13:06 PM
  • Reply to CGT query
    by Gordon999
    The Declaration changing the beneficial interest to 70:30 is prepared only for showing to the Tax Office .

    The existing registration of 10% :90% legal interest at Land Registry does not change and the Mortgage Lender has already accepted this situation. .
    01-07-2022, 12:18 PM
  • Reply to CGT query
    by vik238754
    Hi. My solicitor has told me the declaration needs to be registered with the land registry otherwise there will be no effect of creating the declaration. Is this correct?

    I have also spoken to my lenders and they have mentioned they will want a new copy of the title. I mentioned to them...
    01-07-2022, 10:35 AM
  • For tax purposes is there a limit to the number of years we can carry over losses?
    by Steve Macey
    1.Pretty sure I read there is no limit! and to give kids the reigns if older brcause you cant transfer losses. perhaps was a different tax i read for though
    2. Can utility bills during empty periods be claimed as expenses?
    3. Think I read that I can either choose the 1k allowance or claim...
    15-06-2022, 01:54 AM
  • Reply to For tax purposes is there a limit to the number of years we can carry over losses?
    by Gordon999
    The details for scheme under £7500 :

    https://www.gov.uk/government/public...om-scheme-2021...
    30-06-2022, 16:59 PM
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