Remortgage and tax

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

    Remortgage and tax

    I had my buy to let flat valued as my tenant is leaving, my first thought was to sell as I'd like to use the cash elsewhere! Now thinking about it if I remortgaged when I come to sell eventually, would i pay tax on the amount between purchase price and selling price or would it be the mortgage amount left and selling price. Thank you

    #2
    You would pay tax on the difference between the selling price and the purchase price (less any associated costs, like legal fees).
    If you have ever lived in the property, you would have additional allowances.
    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 Gordon999
      I think Andrew is correct .

      You start with 1/3 interest ( in 1982 valued at £6500 ? ) plus 1/6 interest from parent1 ( valued at £20K ?) plus 1/2 interest from parent 2 ( valued at £60K ? ). This probably takes your total entry cost to around £40K.

      Your total capital...
      09-12-2021, 09:47 AM
    • Reply to Caught out by changes to Capital Gains Tax
      by reluctantlandlord1976
      Hi Andrew
      First of all I've got an initial appointment to speak to an accountant on Friday!

      Can I just check where you write ' ...at death 1/6th of the value of the whole would have been deemed to pass to you for CGT purposes as the survivors would share the whole'.

      Does...
      08-12-2021, 18:02 PM
    • Reply to Caught out by changes to Capital Gains Tax
      by jpkeates
      Even if probate wasn't mandatory, it would probably have been useful.
      08-12-2021, 13:44 PM
    • Reply to Caught out by changes to Capital Gains Tax
      by AndrewDod
      Yes this would be the case if it was jointly owned (not as tenants in common). The situation would be that at death 1/6th of the value of the whole would have been deemed to pass to you (for CGT purposes), as the survivors would share the whole.

      So for the 3 periods you would be taken...
      08-12-2021, 12:51 PM
    • Reply to Caught out by changes to Capital Gains Tax
      by reluctantlandlord1976
      jpkeates
      There was no estate as such, property jointly owned - they were both retired at time of purchase living on small pensions, hence I bought with them so they could stay in the home they'd been renting from council from early 1950s to March 1982 at time of purchase. And I paid for the initial...
      08-12-2021, 10:50 AM
    • Reply to Caught out by changes to Capital Gains Tax
      by jpkeates
      I don't know the historic thresholds, but it's bizarre that there's no probate for both of your parents, their estate has to be tiny for that to be possible nowadays.
      It's probably too late for HMRC to do anything about that, but that process sets the values for CGT calculations later on, so it's...
      08-12-2021, 10:28 AM
    • Reply to Caught out by changes to Capital Gains Tax
      by reluctantlandlord1976
      Morning Andrew
      Thanks for your response early this morning and clarifying I have to make three separate calculations [the split wasn't clear on the CGT calculator].
      I understand the query on the value but this is an ex council house on a council estate [I feel I have to defend it here as...
      08-12-2021, 08:45 AM
    • Reply to Caught out by changes to Capital Gains Tax
      by AndrewDod
      As gordon indicates you need to consider it in three entirely separate parts, each have their own gain and calculation --

      The part YOU owned before Death 1
      The part YOU owned between Death 1 and Death 2
      The part you owned after Death 2

      Based on the values you give...
      08-12-2021, 05:52 AM
    • 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
    Working...
    X