Hello, I would really appreciate some guidance.
In 1995 my father gifted my sister and me 24% each of a property. In 2010 he died, leaving my sister 54% of the property and me 46%. In 2013 I paid my sister two-thirds (ish) of her ownership and the house is now in my sole name.
The probate value of the property in 2010 was £365k. I took out a mortgage of £249k, paid £127k to my sister and spent the remaining £122k on renovating the property. It's now worth SITRO £600k. I've been running it as a FHL for three years but I may need to sell in the next year. I still owe my sister £70.1k.
I am a little confused by having acquired the property through gift, inheritance and buy-out, and then renovated it. Could anyone tell me how to calculate what capital gains tax I will need to pay if I sell the property?
Is there any value in moving into the property for, say, a year before selling, to reduce capital gains tax by making the property my primary residence?
Thank you in advance.
- Home
-
Tax News
- Budgets and Autumn Statements
- Income Tax
- Business Tax
- PAYE and Payroll Taxes, National Insurance, NICs
- Company Taxation
- Savings & Investments, Pensions & Retirement
- Capital Gains Tax, CGT
- Property Taxation
- Inheritance Tax, IHT, Trusts & Estates, Capital Taxes
- Tax Investigations & Enquiries
- VAT & Excise Duties
- Stamp Duty, Stamp Duty Land Tax, SDLT
- International Tax
- HMRC Administration, Practice and Methods
- Professionals in Practice & Industry
- General
- TaxationWeb
-
Tax Articles
- Budgets and Autumn Statements
- Income Tax
- Business Tax
- PAYE and Payroll Taxes, National Insurance, NICs
- Company Taxation
- Savings and Investments, Pensions and Retirement
- Capital Gains Tax, CGT
- Property Taxation
- Inheritance Tax, IHT, Trusts & Estates, Capital Taxes
- Tax Investigations & Enquiries
- VAT & Excise Duties
- Stamp Duty, Stamp Duty Land Tax, SDLT
- International Tax
- HMRC Administration, Practice & Methods
- Professionals in Practice & Industry
- General
- Tax Tips
-
Tax Forum
- Income Tax
- Business Tax
- PAYE and Payroll Taxes, National Insurance, NICs
- Company Taxation
- Savings & Investments, Pensions & Retirement
- Capital Gains Tax, CGT
- Property Taxation
- Inheritance Tax, IHT, Trusts & Estates, Capital Taxes
- Tax Investigations and Enquiries
- VAT & Excise Duties
- Stamp Duty, Stamp Duty Land Tax, SDLT
- International Tax
- HMRC Administration, Practices & Methods
- Professionals in Practice & Industry
- General
- Tax Jobs
- Get in Touch