CGT - help!

  • Filter
  • Time
  • Show
Clear All
new posts

    CGT - help!


    We are trying to work out whether we should sell our property now or rent it out and buy somewhere else but are unclear on the CGT liabilities.

    My wife before we were married purchased a 35% share in a shared ownership property worth 285k in 2008 (sole owner and occupant).
    In 2010 I moved into the property. In 2012 we jointly staircased and bought the remaining 65% share of the property to own 100%
    The property was valued at 315k.

    We are now confident that the property is worth 480-500k (significantly undervalued last year). We are thinking of renting the property out and buying somewhere else. If we do that and sell the property in the future are we going to have a significant CGT expense and would it be better to sell up now?

    For example if we sold it in 2016 versus 2017 or 2018 and the property was worth 600k what would our CGT expense roughly be?

    I’m aware that we are exempt from CGT for the years we have lived in the property and for the last 3 years of ownership.

    Thanks for your help

    You are exempt from CGT for the period of self occupation plus 3 more years after date of moving out from the property. If you move out today and sublet for 3 years , you will be exempt up to July 2016. But you can also claim a lettings relief up to 40K if you decide to sublet for a longer period than the 3 years grace period.


    Latest Activity


    • Reply to Rent 2 Rent Tax Return
      by dhoops97
      This is really helpful. My dad has changed the tenancy agreement and named me as landlord, so all payments are made to me. Therefore, all I need to do is declare all the income in the year as income and any payments to my dad, as expenses?

      Also, does this need to be in writing. At the moment...
      03-08-2021, 16:32 PM
    • Rent 2 Rent Tax Return
      by dhoops97

      I'm currently receiving the rental income for my dads properties. I'm currently fully managing the properties for him and the tenants are paying the rent into my account. Once I receive the rent, I pay my dad a fixed amount and I keep the rest. Is this legal? And if so, do I pay tax...
      03-08-2021, 14:24 PM
    • Reply to Rent 2 Rent Tax Return
      by jpkeates
      It's legal.

      If you're named as the landlord on the tenancy agreements, your business is rent to rent.
      The amount you pay your father is a business expense, so you'll end up paying tax on the profit, but you need to declare the full amount as income and the payment to your father as...
      03-08-2021, 14:44 PM
    • Reply to HMRC Section 36 notice
      by Neelix
      If you were unemployed and receiving benefits and didn’t tell them you may need to brace yourself for contact from the DWP too...
      03-08-2021, 10:01 AM
    • HMRC Section 36 notice
      Wondering if anyone has any experience with one of these please?

      I received a letter from HMRC a few months ago stating they were investigating my property affairs. I was told I could provide documentation regarding it to help but if I didn’t wish then they would complete the check on...
      02-08-2021, 08:50 AM
    • Advice for DoT 100/0 or 99/1 is there a beneficial difference?
      by spikeg33
      I would appreciate some advice on getting our one rental property transferred into my beneficial interest as I have recently retired and now have the whole of my tax allowance to use against the rental income. I have researched and researched but would like some clarification about what to do . At present...
      02-08-2021, 14:07 PM
    • Reply to Advice for DoT 100/0 or 99/1 is there a beneficial difference?
      by spikeg33
      I know it’s 1% difference but was really asking what the legal implications are of either transferring it into 100/0 or 99/1. I’m not an expert in this field in any way shape or form and am merely asking for advice....
      03-08-2021, 09:10 AM
    • Reply to Advice for DoT 100/0 or 99/1 is there a beneficial difference?
      by theartfullodger
      Difference between 100:0 & 99:1?? 1%.
      03-08-2021, 09:02 AM
    • Reply to Advice for DoT 100/0 or 99/1 is there a beneficial difference?
      by spikeg33
      Thank you jpkeates for your advice. I will now proceed with 99/1 and happy that you have clarified the situation for me....
      03-08-2021, 08:51 AM
    • Reply to HMRC Section 36 notice
      by Section20z
      In your shoes I think I would be asking for a personal interview (maybe on Zoom these days) so you can find out exactly what they require. In my experience I have always found them reasonable and helpful and you can always ask for a supportive friend to also be present if you're nervous.
      03-08-2021, 08:06 AM