CGT Allowances

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

    CGT Allowances

    Hi, Please make allowance for the newbie-nature of my first post but I could do with little advice following the disposal of one of my rental properties. I bought the property for £177,500 back in August 2006 and lived in until October 2010. I then rented it on and off until I completed the sale of it on 1st April 2016 for £239,500. I understand that I can claim an allowance for the time I lived there, plus 18 months, as a percentage of the whole gain. I should also be able to claim for the buying and selling costs, the original SDLT and I have my 2015-16 CGT allowance that I can use. I got married last year so can I use my wife's 2015-16 CGT allowance also? The proceeds of the sale were invested in another rental property within the same month. Any hints, tips and calculations would be very much appreciated.

    #2
    When you calculate the gain, you can deduct the costs associated with the purchase and sale including the SDLT, yes.
    Your 15/16 allowance is relevant as the transaction was in that tax year.
    Unless your wife owned some of the property her allowance is not usable.

    You can also probably also claim letting relief.
    I would get an accountant to complete your tax return as, for a couple of hundred pounds, you can save a lot of money going to HMRC.
    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

    Latest Activity

    Collapse

    • Caught out by changes to Capital Gains Tax
      by reluctantlandlord1976
      I appreciate 'ignorance' is no excuse, however there are some mitigating factors, i.e. due to illness etc.

      1. Previous family home rented out - terrible tenants - left owing rent, bad repairs etc. [usual story for some] subsequently property not let for 2 years for a number of reasons while...
      06-12-2021, 13:51 PM
    • Reply to Caught out by changes to Capital Gains Tax
      by reluctantlandlord1976
      Thank you Gordon, didn't see your response this afternoon. I will look at this with fresh eyes tomorrow as it's late now.
      I've put some figures in my reply to a post just now but answers below to your questions.

      a] £80k Jan 2021 sale price.
      b] As property purchased before...
      08-12-2021, 00:55 AM
    • Reply to Caught out by changes to Capital Gains Tax
      by reluctantlandlord1976
      Andrew, apologies only just seen your post [was it awaiting approval did you say?] answers are:

      Purchased March 1982 as joint tenancy - so equal split of 33 1/3% each party
      Parent 2 died September 2007 - as joint tenancy I inherited their share - so at this point I own 100% of property...
      08-12-2021, 00:41 AM
    • Reply to Caught out by changes to Capital Gains Tax
      by reluctantlandlord1976
      JP Keates
      I wasn't aware that refurbishment deductions only applied in terms of letting out the property. On the CGT calculator it asked 'How much have you spent on improvements since you became the property owner'.....

      Here's the timeline:

      March 1982 - 1992 3 Owners,...
      07-12-2021, 18:01 PM
    • Reply to Caught out by changes to Capital Gains Tax
      by reluctantlandlord1976
      JP Keates et al - thank you very much for your assistance. I have this afternoon emailed an accountant to try and get an appointment urgently. I hadn't realised it was all so complicated and it was remiss of me to not be aware of the CGT changes made in 2020 due to not renting out the property. Thanks...
      07-12-2021, 17:28 PM
    • Reply to Caught out by changes to Capital Gains Tax
      by jpkeates
      Refurbishment while you were living there is only allowable against CGT if it was solely and exclusively for the business, so if it was to prepare the property to be let, it would be OK.
      If it was simply to improve what was then your home, it fails the basic test.

      Get yourself to...
      07-12-2021, 16:22 PM
    • Reply to Caught out by changes to Capital Gains Tax
      by AndrewDod
      The probate resets a lot of the stuff, but my main response was unapproved
      07-12-2021, 15:36 PM
    • Reply to Caught out by changes to Capital Gains Tax
      by AndrewDod
      You are really short on detail:

      Date (year & month) bought in joint names ______ (what % was yours then)
      Date it converted to your sole name ______ (presumable date of death of parent 2?)
      Declared vale at probate _________
      Capital expenses between date of probate 2...
      07-12-2021, 15:33 PM
    • Reply to Caught out by changes to Capital Gains Tax
      by reluctantlandlord1976
      We were all joint owners. Bought it with parents. I lived there for 10 years before buying own home. I became sole owner upon their deaths. Rented out since 2007-2019. Empty last two year as trying to sell. Hence I was off the landlord radar. I am now extremely worried by your statement that refurbishment...
      07-12-2021, 14:53 PM
    • Reply to Caught out by changes to Capital Gains Tax
      by AndrewDod
      Let us know the exact timescale and money involved year by year - I am sure some kind person (or even myself) with do a calculation for you so that you can assess the risks involved
      07-12-2021, 14:33 PM
    Working...
    X