CGT, B2L, no capital gain, how to complete HMRC SA return etc.

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    CGT, B2L, no capital gain, how to complete HMRC SA return etc.

    Wife & SiL jointly inherited MiL's house some 4 years ago: It was then probate valued @ £280k by local estate agent, letter filed.

    They never resided in it but rented it out, rental income & expenses declared by both, 50/50. Rental income ceased before tax year 13-14.

    Sold in October 2013 for £260k. Proceeds split 50/50. No disputes between parties. All paperwork in order AFAIK.

    I'm now "helping" wife do her tax return for 13-14. No property pages to complete & she will include a note covering end of rental & sale of house to explain no property pages.

    I have never handled sale of B2L before. Am I correct that no capital gain section needs to be completed, but that I should include notes on what happened to illuminate HMRC's thinking??

    Regards & thanks in advance.
    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...

    #2
    No, she should complete the Capital Gain page as she can claim a loss off of future rentals. I take it your wife is completing on line?

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      #3
      Thanks for prompt reply Claymore: She is v v v v unlikely to have any future rental income... But yes, doing it online & will complete capital gain page.
      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...

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        #4
        One of the questions on the properties pages 'I think' asks how many properties do you rent, and have you disposed of any since the last tax return. Wife can also include the costs of solicitors and estate agents as a capital loss.

        Also, property isn't the only investment that has a capital gain - say your wife has some shares and then makes a fortune - she would be liable to pay CGT on the profit, but if she has already banked her loss from the property, then it would be offset against the new gain and a lower tax bill.

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