Capital Gains Tax !

  • Filter
  • Time
  • Show
Clear All
new posts

    Capital Gains Tax !

    Ok you clever people , I could make this very long but I will try and keep it short , How do you no or find out if you have to pay this tax ? I have a few property,s and would like to sell the largest one but have been told if I'm not the payer of the bills I only have 18 months and then its not my main house and would be liable for 40% taxed on the profit ( which would be loads as we have had the house in our joint names for 23 years ( moved out 2 years ago ) I no its not black and white and for some strange reason no one seems to no the truth on this high property tax , Thank you for reading this and any fed back would be great .

    I'm am assuming this property you are selling was previously rented out, and therefore was not your main residence, if this is the case you will be liable to CGT, the exception is only for your main residence, if you can prove you lived there prior to selling it you could then get the relief of CGT on this.


      Reading "no" as "know", and assuming you have copyright clearance.

      It is not a property tax; it might better be described as an investment tax. Also it is not 40%; the rate depends on your marginal rate of tax, and whether or not the gain is on residential property, but no rate is currently greater than 28%.

      The answer to the main question is that any investor is expected to keep proper records and submit proper tax returns. Given that, in London, most BtL landlords are aiming for a capital gain, all should have factored CGT in from the start of the business.

      The real question here is to the extent that you have exemption as the result of its being your main home. Whilst that exemption may still apply to you, it is not really intended for people with large portfolios. I think the aim is that it allows people to work away from home, or not sell their old home immediately, if selling proves difficult.

      Rather than try to summarise the rules and get them wrong, start here: In particular I wonder if you actually bought as an investment, even though you lived in it, which might void the allowance.


        Paying of (utility) bills has nothing whatsoever to do with ownership with respect to Capital gains.

        If you lived there for 23 years and rented it out for 2 years, GCT would almost certainly be zero.

        But you seem not to have lived there - or did you????. The amount of time you "get" is zero -- not sure where the 18month idea comes from..... that is only applicable if it was your primary and only residence.

        It is (mostly) black and white.

        Yes I generally know the truth.

        You need to describe the thing exactly to get to that truth.


          Thanks for your replys , The house was our main living house until 2 years ago when we down sized ,we never rented the house out as tried to sell it but it fell threw a couple of times so no we never rented this house , Our tax records are all complete and up to date with the other propertys , We don't want to sell the house and then get a very lg CGT as you could imagine ,again thank you all for your valuable time .


            Then your CGT bill will almost certainly be zero.

            Unless it is an extremely expensive property and increased in value by at least a million or so (given two basic CGT exemptions) -- if that is the case you will need to look at precise numbers.

            Can you prove it was your only or designated main residence for all of that period (minus 2 years)?


              Thank you .


                If you have lived in the property for 21 years out of 23 years , the tax office will give exemption to capital gains tax for 21 years + 18 months from date of moving out. So only the gain for last 6 months is taxable.

                If your capital gain over 23 years gives you £460,000 profit which is a gain of £20,000 per year. Your tax able gain for 6 months period is £10,000 . You have a capital gains allowance of £11,000 so there will be no tax to pay.


                  If the property never rented, it never became part of a property investment business, so the property never become an investment.
                  The rules in second property sales are fairly simple, and the actual answer will depend on where you actually lived and what, if anything, you told HMRC (about which was your main home for example).
                  When I post, I am expressing an opinion - feel free to disagree, I have been wrong before.
                  Please don't act on my suggestions without checking with a grown-up (ideally some kind of expert).


                  Latest Activity


                  • Complex (for me!) CGT question on 2 property ownership...
                    Hi, this is my first post and I'm looking for some initial guidance on what I think is a somewhat complicated problem i'm heading towards...
                    Apologies, its a long post!

                    The facts:

                    In 1983 my parents and I purchased our family council home under the Thatcher 'Right to...
                    19-02-2018, 13:42 PM
                  • Reply to Complex (for me!) CGT question on 2 property ownership...
                    Yes, I think you are right jpkeates. What started out as a fairly simple purchase and investment all those years ago has a life of its own now and has become complicated. I didn't for instance know if I might be able to claim PRR for the 3 years I was there when we first purchased it but just having...
                    20-02-2018, 14:44 PM
                  • Reply to Complex (for me!) CGT question on 2 property ownership...
                    You're probably going to need a tax specialist.
                    When you are tenants in common with a percentage ownership, who lived where and when becomes critical and fiddly.

                    For example, your third is subject to PPR for periods you were living there, but not when you weren't - family home or...
                    20-02-2018, 12:55 PM
                  • Reply to Complex (for me!) CGT question on 2 property ownership...
                    Hi JPKeates, we were tenants in common and what happened was my father left his share to my mother so she had 67% and I had 33%, which changes the figures Gordon 999 came up with.

                    Re your response Gordon999 - thank you so much, you made me realize the obvious - that I hadn't actually owned...
                    20-02-2018, 12:46 PM
                  • Stamp Duty query
                    HP mum
                    I originally posted in the finance section - but I now think this is more of a tax question. Some questions arose during a discussion yesterday and I just wondered if anyone has any thoughts/ answers on the below?

                    1stly) If someone (or company) buys a debt that has a legal charge over...
                    20-02-2018, 11:36 AM
                  • Reply to Stamp Duty query
                    Transactions are "connected" based on the facts of the transactions.

                    You don't buy a property and its debt separately.

                    In the example you give, the property is worth £3.5m, anyone buying it at £1.5m would be taxed as though the transaction was £3.5m - unless they...
                    20-02-2018, 12:21 PM
                  • Reply to Stamp Duty query
                    HP mum
                    thanks for the reply.

                    Still a bit confused. If the debt is not a mortgage; rather a loan charged against a property does that make a difference?

                    In such a poor market it is difficult to ascertain what is the "worth".

                    If a transaction went through at...
                    20-02-2018, 12:03 PM
                  • Reply to Stamp Duty query
                    Buying a debt wouldn't incur stamp duty (unless the debt was some kind of tradable share). It's an interest in land, but it's unlikely to attract Land Tax as a secondary charge - but if the interest were sufficient to make it a controlling interest it might. If the debt was 99% of the property value,...
                    20-02-2018, 11:47 AM
                  • Has anyone read anything about the Labour Party's commitment to Land Tax?
                    Worried of Bermondsey
                    If so, can you share it because, from the little I've read, I'm worried.
                    I believe that both Labour and Liberals are committed to replacing Council Tax with Land Tax.
                    And I think this has very frightening implications for buy-to-let landlords.
                    I've looked at how Land Tax works on...
                    11-02-2018, 16:08 PM
                  • Reply to Has anyone read anything about the Labour Party's commitment to Land Tax?
                    ...they need to bring back Poll Tax, correct and proper tax, you use it, you pay for it (assuming adult etc).

                    LVT is never going to get off the runway ..

                    If Labour get into power we have far bigger issues than LVT .. after all they cannot even convince us they can actually...
                    20-02-2018, 11:11 AM