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Where Taxpayers and Advisers Meet

CGT on part disposal of property

paulbrownarabs
Posts:4
Joined:Fri Aug 18, 2017 12:47 pm
CGT on part disposal of property

Postby paulbrownarabs » Fri Aug 18, 2017 12:53 pm

hi
my GF and I bought a house + 6 acres of land/stables 13 or so years ago in a single transation (but 2 seperate title deeds)
5 years ago we rented this out and bought another house which we still live in.
last year we sold the house but have kept the land.
Obviously there is a potential CGT liability but am unsure how to calculate/report this?
can anyone advise what the best solution would be - do i need to get an accountant to work it out or should it be simple?
ps - i dont think we will have any liability with the amounts involved but i need to confirm.

maths
Posts:8507
Joined:Wed Aug 06, 2008 3:25 pm

Re: CGT on part disposal of property

Postby maths » Fri Aug 18, 2017 2:49 pm

In whose name(s) was the house/land registered?
How was the beneficial interests split between the two of you?
Did either or both of you ever live in the house?

paulbrownarabs
Posts:4
Joined:Fri Aug 18, 2017 12:47 pm

Re: CGT on part disposal of property

Postby paulbrownarabs » Fri Aug 18, 2017 5:56 pm

thanks
joint names for mutual/equal benefit and we both lived in the property until we bought the 2nd property, so 8 or so years.

paulbrownarabs
Posts:4
Joined:Fri Aug 18, 2017 12:47 pm

Re: CGT on part disposal of property

Postby paulbrownarabs » Fri Aug 18, 2017 6:01 pm

as example/indicative numbers
house no1+land bought for 500 13 years ago
house no1 (without land) sold last year for 400

maths
Posts:8507
Joined:Wed Aug 06, 2008 3:25 pm

Re: CGT on part disposal of property

Postby maths » Fri Aug 18, 2017 6:11 pm

Missed reference to 13 years; sorry. Assuming sold last year after 12 years of ownership.

Owned and lived in property for 8 yrs and then rented for say 4 years to last year when house sold.

Of the gain you made 9.5/12ths of gain is exempt; and 2.5/12ths of gain also exempt (40,000 if less).

Likely no CGT charge will arise.

However, by selling the house but retaining the land any exemption from CGT should you sell the land has been lost.Not a good move!!

paulbrownarabs
Posts:4
Joined:Fri Aug 18, 2017 12:47 pm

Re: CGT on part disposal of property

Postby paulbrownarabs » Fri Aug 18, 2017 6:24 pm

thanks maths
this is where i get confused (not difficult) - obviously there is no gain as bought both for 500 and sold house for 400 (negative -100 "gain")
in addition we only rented out the house and still "occupied" the land/stables which form a part of our new home as new house we bought also adjacent to land
does that change anything?


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