Can someone tell me how much capital gains i will have to pay

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    Can someone tell me how much capital gains i will have to pay

    Hi all,
    I own 2 properties, one is my main residence and the other is a rental property which ive let out since ive owned it from 1996.
    I am mortgage free.
    I paid £43,000 for the rental property and its now worth around £500,000
    Does anyone know what the CGT would be if i were to sell it now?
    Other than that if i were to gift it to my daughter and she would live there, would i still have to pay CGT and if so, how much?

    #2
    A tax bill of £120,000.00 about...

    Gifting to daughter won't help unless you do it in tiny chunks (at this kind of value you could gift about 2% of the property each year for the next 50 years to avoid tax if the tax rules remain unchanged)

    Lets say capital costs (some legal costs, extensions to the property etc) are £43K+another 7K -- you raw gain is around £450,000

    Comment


      #3
      Also worth reading up on inheritance tax. Here's a good start point;

      https://www.gov.uk/inheritance-tax

      Might be worth considering mortgaging down to the thresholds.

      Comment


        #4
        Given the value, I would talk to a family solicitor.

        There should be a mechanism where the property can be transferred into a trust in favour of your daughter without reservation, which should allow the CGT to be deferred.
        But it's a really complex area of tax and you really need a grown up for that kind of advice.
        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).

        Comment


          #5
          inheritance tax is a disgrace

          Comment

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