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Where Taxpayers and Advisers Meet

CGT on sale of rental property for new home?

CazMax
Posts:5
Joined:Mon Jan 15, 2018 2:26 am
CGT on sale of rental property for new home?

Postby CazMax » Mon Jan 15, 2018 2:49 am

Ok, I'm in tears.. My parents bought a property in 1999 for my disabled son and I to rent after my marriage ended. They paid £30,000, and my son(now 23 and dependant due to learning difficulties)and I have planned a dream move to Wales/Scotland. The house is now worth £160,000,with which I planned to reimburse my parents £30,000 and use the rest for a new property. Our dreams were smashed with a friends "what about capital gains? " remark. I had NO idea this existed. In effect, we seem unable to move as the CGT would be about £35k plus the £30k to my parents and fees etc would leave about £90k, not enough for a new home. Is this accurate? Sorry to sound hysterical but I am genuinely devastated, I can't even tell my son. I'm hoping I've got this wrong but googling has just got me more confused. Any advice would be greatly appreciated :(

RMC
Posts:435
Joined:Wed Aug 06, 2008 3:35 pm

Re: CGT on sale of rental property for new home?

Postby RMC » Sun Mar 04, 2018 1:28 pm

Rejoice - you (or rather your parents) have made a sizeable gain! and tax on it is much lower than if you had to work for it like most people, and no NIC either!

Also very nice having tenants working away to keep you.

bd6759
Posts:4262
Joined:Sat Feb 01, 2014 3:26 pm

Re: CGT on sale of rental property for new home?

Postby bd6759 » Sun Mar 04, 2018 3:11 pm

Still in tears after the advice you were given in January?

https://www.taxationweb.co.uk/forum/cgt-on-sale-of-rental-property-for-new-home-t53161.html

bd6759
Posts:4262
Joined:Sat Feb 01, 2014 3:26 pm

Re: CGT on sale of rental property for new home?

Postby bd6759 » Sun Mar 04, 2018 3:12 pm

Just realised this is an old dupolicated thread.


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