Likelihood of paying capital gains tax?

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

    Likelihood of paying capital gains tax?

    Hi all,

    I lived in my old property for 10 years. I then bought another house and let my old property in 2018.

    Im thinking about perhaps selling it next year. I bought the property in 2011 for £150k. Its now worth about £220k.

    I think Im right in saying that I only have to pay CGT on the price increase since 2018 when it became my 'secondary property'?

    What do you think the CGT is likely to be, or how would I work it out?

    The reason why Im asking this is because I have come capital losses that I can use to offset the CGT.

    Thanks





    #2
    Depends on what CGT rules will be next year ( 2023..). F K. Unless you have knowledge of what Rishi is going to do.
    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


      #3
      GCT is based on the total gain over the whole time you’ve owned the property. Under the current rules you’d get relief for the time it was your only or main residence plus the final 9 months of ownership. You also get an annual CGT allowance but as Artful says, who knows what the rules will be next year.

      Comment


        #4
        Ah ok, so if CGT is only applicable from 2018 onwards, plus the 9 months, plus my CGT allowance of £12,300, its unlikely Ill have any CGT to pay. (As it currently stands,but may change next year)
        Thanks

        Comment


          #5
          Originally posted by jtufty View Post
          Ah ok, so if CGT is only applicable from 2018 onwards, plus the 9 months, plus my CGT allowance of £12,300, its unlikely Ill have any CGT to pay. (As it currently stands,but may change next year)
          Thanks
          No, the gain is the total gain for the whole time you have owned the property no just since 2018.

          Comment


            #6
            You have made a capital gain= £70K during 2011 to 2022 ( = 11 years approx )

            Your own residence period (2011 to 2018 ) +9 months = 8 years approx.

            your capital gain during own residence = £70K x 8/11 = £50K approx.( Nil cgt )

            Your taxable capital gain ( during letting period ) = £70K - £50 K = £20K

            You can claim the annual capital gains allowance = £12,300 and pay cgt on £7,700

            Comment

            Latest Activity

            Collapse

            • Reply to Any property tax experts you can recommend please?
              by jpkeates
              It would require the consent of the trustees, one of whom could be you and it would have to be in line with the purpose of the trust.
              If you are not acting in the interest of the beneficiaries, they could try and prevent you doing what you propose.

              I am not at all sure what you're...
              20-05-2022, 16:51 PM
            • Any property tax experts you can recommend please?
              by mpppen
              Hello,
              We have a small BTL portolio of five properties. Some are in our personal names and the latter ones in a property company we set up a few years' ago when the tax rules changed.

              I'd really like to find someone who can advise us of the best way of either bringing the personal...
              03-03-2022, 20:00 PM
            • Reply to Any property tax experts you can recommend please?
              by Trevor62
              If I put the property in a trust for them, can I at a later date close the trust and take the property back?...
              20-05-2022, 16:38 PM
            • Reply to Selling a property that i own to a limited company
              by platforminc
              To provide an update.
              I have now got the report from the surveyor, he lists the structural issues and what he saw when he visited the property.

              Few questions.

              I have an existing company that has been going for 3 years or so, it has the following SIC codes
              • 41202 - Construction
              ...
              20-05-2022, 11:57 AM
            • Selling a property that i own to a limited company
              by platforminc
              Hi All.


              If a property was bought on auction with cash and after the purchase the following issues were noticed after the purchase

              Movement within the building - bulging front elevation walls
              Presence of Asbestos
              Dry rot issues


              My question...
              10-04-2022, 14:20 PM
            • Reply to Any property tax experts you can recommend please?
              by jpkeates
              You'd probably be advised (by a proper grown up legal person) to will it to your children, but into a trust if they're under 18.
              20-05-2022, 08:44 AM
            • Reply to Any property tax experts you can recommend please?
              by Trevor62
              Thank-you for the link.

              Well my issue is Tax & Assets.

              Firstly, I am in the process of building a house in my side garden, when complete I will own two properties.

              Will I have to pay stamp duty for the new build?

              Because I am an old dad and my...
              19-05-2022, 19:44 PM
            • Capital Gains Tax dilemma
              by Ollyn
              Hello

              I am considering whether to sell my house which has been let for some time and need to see how I can best deal with CGT.

              I lived in the property from 1984 until 2006.

              From 2006 it has been occupied by tenants, now vacant and being renovated.

              ...
              18-05-2022, 18:17 PM
            • Reply to Capital Gains Tax dilemma
              by Gordon999
              You have owned the property for 38 years ( 1984 - 2022 ) and lived in the property for 22 Years ( 1984-2006 ) plus 16 years for letting..

              The total capital gain over 38 years is apportioned between "residence period" ( exempt for cgt ) and "letting period" ( liable...
              19-05-2022, 10:07 AM
            • Reply to Capital Gains Tax dilemma
              by ash72
              You should seek advice from an accountant, or a property tax for tailored advice to your specific circumstances, you may be entitled to some relief if the property at any time was your own principal residence.
              18-05-2022, 21:14 PM
            Working...
            X