CGT on sold property

Madlarry1 · Postby **Madlarry1** » Wed May 14, 2003 10:44 am

Hi
My wife and I bought a property for 26k in dec91.In sept96 we bought another house and moved there and rented out our first house.In Dec 03 we sold the rented house and made 40k.A friend of ours says that we may not have to pay CGT .
Just a couple of questions:
Is our friend right and if not how much will we have to pay ?,
will my local tax office be able to help me to fill out this CGT form?
Thanks for any advice

shafranik · Postby **shafranik** » Fri May 16, 2003 3:16 am

if both you and your partner owned the property jointly, then you can both make use of the annual exemption (2 x Â£7,700) in order to mitigate the Â£14,000 gain you made on the sale

littleidea · Postby **littleidea** » Fri May 16, 2003 4:01 am

I suppose you meant the house was sold in Dec 03 rather than Dec 02.

I worked that your gain, ignoring any indexation allowance will be around Â£4242. This is covered by your annual exemption irrespective of whether the property is jointly owned or not.

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