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Where Taxpayers and Advisers Meet

Property Sale

Jambo55
Posts:131
Joined:Wed Jun 23, 2010 5:54 pm
Property Sale

Postby Jambo55 » Wed Aug 08, 2018 8:45 am

Morning taxationweb,

I wonder if I could pick your brains!

around 20 years ago a former council house was purchased (from the council) for a relatively small amount of money - I have held it for around 20 years and am now looking to sell it, but, as you can imagine the sales value is hugely different to the purchase price! So I'm assuming quite a large capital gains tax bill - am I correct in thinking that the allowances available for this would be limited to letting relief, plus the standard annual tax free CGT allowance - I suppose what I'm asking is, that there aren't any other particular reliefs / allowances available in such a scenario.

As always, thanks for any advice, JmB

Peter D
Posts:10668
Joined:Wed Aug 06, 2008 3:37 pm

Re: Property Sale

Postby Peter D » Wed Aug 08, 2018 8:07 pm

Have you lived in the property since you purchased it as your only home. ?

Regards Peter

Jambo55
Posts:131
Joined:Wed Jun 23, 2010 5:54 pm

Re: Property Sale

Postby Jambo55 » Thu Aug 09, 2018 8:45 am

Hi Peter, no I actually let my sister live in it rent free for many years, and let it out to a private individual for the last 2 years, thanks

AdamS93
Posts:268
Joined:Tue Sep 26, 2017 6:28 pm

Re: Property Sale

Postby AdamS93 » Thu Aug 09, 2018 10:36 am

Doesn't look good.

No letting relief unfortunately, as it has never been your main residence.

Peter D
Posts:10668
Joined:Wed Aug 06, 2008 3:37 pm

Re: Property Sale

Postby Peter D » Thu Aug 09, 2018 10:43 am

Letting Relief will not be available to you so just your un-used Capital Gains Allowance presently £11,700. Minus acquisition and selling costs. The rate of CGT depends on you total Income in the year of disposal. Regards Peter


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