Tax and income on a Building Burnt down

Collapse
X
  • Filter
  • Time
  • Show
Clear All
new posts

    Tax and income on a Building Burnt down

    Hello All

    The building I had a flat in burnt down.

    I am being paid rent from the insurance company and I have had an offer to settle from the freeholders (Camden) by buying me out.

    Do I pay Capital Gains tax on this type situation and also do I pay tas on the insurance rent?

    Incidentally, would I need a surveyor or solicitor to negotiate the price?

    Sorry if too many questions, but I have suffered anxiety for over a year on this. Grateful for any help you may have.

    #2
    Were you living in your own flat in a council owned block of flats ? and was the flat rented to a tenant ?

    Comment


      #3
      Why start another thread?
      I am legally unqualified: If you need to rely on advice check it with a suitable authority - eg a solicitor specialising in landlord/tenant law...

      Comment


        #4
        So that many people can spend many minutes re-establishing all the details he's given in the previous threads :-(.

        Comment


          #5
          Oh dear I have I have not upset people, I may have two user names. Not being young any more my mind is not what it was. Apologies.

          Thank you for replying Gordon. The flat was a Camden Victorian freehold conversion and I was the Landlord. Some of the flats had Camden tenants,a few were owner occupied.

          Let me know if you need more information. I am not well and may a few weeks to acknowledge. I will do my best.

          Regards

          Comment


            #6
            Is there any date for accepting the offer to buy you out ? You should check with other flat owners to see if there is general acceptance of the offer. You can speak to some local estate agents about approx current valuation for a comparable flat ( 1 bed or 2 bed flat ) in your street . Are the other flat owners using a surveyor to get higher valuation ? or using same solicitor to handle the conveyancing ?

            If you were not living there when the fire occurred, the insurance rent is treated same as rent paid by the tenant and the rent must be reported on your annual tax return.

            Yes, I think the capital gains tax will apply to the "capital gain" which can be reduced by the "period under owner occupation + 18 months " and by the annual allowance of about £11,500.

            Comment


              #7
              Thank you so much for your prompt reply.

              There is no date given, I have been told by Camden that they will be coming back to me. Unfortunately the other lessees never bothered to communicate over the years that I tried to get an association going. One did for a short while and then I received no more replies to my emails, so I am on my own.

              Thank you so much for the information in the last two paragraphs, I was not living there as my tenant was.

              To my original question, would you think I should go to a solicitor or straight to a surveyor?

              Best
              Alan

              Comment


                #8
                I think you should consult a surveyor first and seek advice if the compensation offer is fair and matches the value assessed by the District Valuation Office .

                Comment


                  #9
                  That's kind of you Gordon, that's what I will do.

                  Best regards

                  Alan

                  Comment

                  Latest Activity

                  Collapse

                  • Stamp duty when changing the beneficial interest share
                    Nick88
                    My wife and I have a joint buy to let property, where the beneficial interest is split 50/50 and where we're both on the mortgage which is £210,000.

                    As she isn't working at the moment and I'm a higher rate tax payer we want to switch the beneficial interest so she has 99% and I have 1%...
                    22-09-2019, 22:40 PM
                  • Reply to Stamp duty when changing the beneficial interest share
                    AndrewDod
                    To add: The jointly and severally liability bit -- is not relevant to anything here. All that has to do with is who mortgage company can sue for repayment of the whole (one or both) when things go wrong.
                    It has to do with the liability for the loan - not ownership (in theory I can be liable to...
                    23-09-2019, 09:38 AM
                  • Reply to Stamp duty when changing the beneficial interest share
                    AndrewDod
                    - Stamp duty is not payable on gifts where not mortgaged
                    - Stamp duty is payable on gifts where mortgaged (on the mortgaged part of the transfer)
                    - The fact that transfer takes place via a Deed of Trust (which is the only way it can do) is totally irrelevant to the stamp duty position. The...
                    23-09-2019, 09:18 AM
                  • Reply to Stamp duty when changing the beneficial interest share
                    Gordon999
                    Check if your 50/50 ownership at Land Registry is registered under "joint tenants" or "tenants in common" ?

                    If it is "tenants in common", no change is required ( and no stamp duty to pay ) .

                    Then you can change ratio to 99/1 by using...
                    23-09-2019, 00:10 AM
                  • Name off title deeds to remove tax liability
                    Edgarina
                    I am a higher rate tax payer and my wife is not. I have removed myself from the mortgages of the two buy to let properties we have jointly owned and all the proceeds of the properties are now going into an account in my wife's name. Is this enough so I am no longer liable to pay tax on the income from...
                    07-09-2019, 13:40 PM
                  • Reply to Name off title deeds to remove tax liability
                    Kape65
                    It looks like I may have this wrong. It appears that the 3% surcharge may no longer be payable for spousal transfers, can anybody verify this?
                    22-09-2019, 10:48 AM
                  • Second payment on account
                    dotcotton999
                    Hello all,

                    After paying my 2017/18 tax bill I was asked to pay the first payment on account for 2018/19. The first payment was due by the 31st July 2019. This payment goes towards my future tax bill.

                    I paid that money owed by the deadline but it hasn’t reduced my 2018/19...
                    02-08-2019, 05:58 AM
                  • Reply to Second payment on account
                    dotcotton999
                    I telephoned HMRC... they said usually the amounts are worked out automatically but there had been issues with some accounts because payments on account hadn’t been generated correctly by them

                    thanks for all the assistance...
                    17-09-2019, 19:46 PM
                  • Reply to Second payment on account
                    Gordon999
                    If you make your tax return online, then you can check the "statement " section showing your payments made to tax office against your own bank statements.
                    17-09-2019, 00:01 AM
                  • Reply to Second payment on account
                    dotcotton999
                    There’s me thinking it’s called self assessment...
                    16-09-2019, 19:28 PM
                  Working...
                  X