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Where Taxpayers and Advisers Meet

CGT on house sale.

andytw
Posts: 7
Joined: Tue Oct 24, 2017 9:56 am

CGT on house sale.

Postby andytw » Mon Nov 19, 2018 1:06 pm

My wife inherited a house from her mother in November 1986. It was tenanted then and has remained so since.
It would have had a value at that time which I guess we can find out from somewhere, RICS maybe ?
Let's call that value 'A'

In January 2017 the property was transferred to joint names of myself and my wife.
It will have had a value at that time which we can look up on Land Registry.
Let's call that value 'B'

So now onto the question.

We are considering selling the house.

Supposing it sells and we achieve a return of 'C'

How do I go about working out our CGT liabilities.

Does the the solicitor notify HMRC, or do I do this on my SA ?

Thanks

andytw

AdamS93
Posts: 236
Joined: Tue Sep 26, 2017 6:28 pm

Re: CGT on house sale.

Postby AdamS93 » Mon Nov 19, 2018 1:20 pm

The gain will be C (sales proceeds) less A (probate value) - split between you and your wife.

This gain will be reduced by any available annual exemptions and the taxable gain will then be taxed at 18% and/or 28% depending on what tax band the gains fall in.

This will be declared via your tax return. You may want to engage an accountant to complete this for you as you could be paying more CGT than you need to.

andytw
Posts: 7
Joined: Tue Oct 24, 2017 9:56 am

Re: CGT on house sale.

Postby andytw » Mon Nov 19, 2018 5:58 pm

Thanks for that.

And we would be able to deduct a CGT allowance each of 12k for 2019-20 ?

Just trying to get some ball-park figures in our heads.

Understood re accountant, sound advice.


Thanks

andytw
Posts: 7
Joined: Tue Oct 24, 2017 9:56 am

Re: CGT on house sale.

Postby andytw » Mon Nov 19, 2018 6:42 pm

In answer to myself and re-reading your reply you did say "reduced by any available annual exemptions".

I have visited https://www.tax.service.gov.uk/calculate-your-capital-gains/resident/properties/ which has given me a good idea of the amount payable.

I have had to guess the probate value, though, are these available on request ?

AdamS93
Posts: 236
Joined: Tue Sep 26, 2017 6:28 pm

Re: CGT on house sale.

Postby AdamS93 » Mon Nov 19, 2018 7:13 pm

You need to agree a value with HMRC.

CG34 is the form I believe from memory.

andytw
Posts: 7
Joined: Tue Oct 24, 2017 9:56 am

Re: CGT on house sale.

Postby andytw » Fri May 10, 2019 9:37 am

This house sale completed yesterday 10 May 2019. I am wondering when I pay the CGT.

By my reckoning --> This is now tax year 2019-2020 which will end April 2020.
I will then do my SA around Sept 2020 and expect to settle the tax by end of Jan 2021.

Have I got the right ?

Thanks

Jholm
Posts: 103
Joined: Mon Mar 11, 2019 4:22 pm

Re: CGT on house sale.

Postby Jholm » Fri May 10, 2019 4:41 pm

Yes to the above

andytw
Posts: 7
Joined: Tue Oct 24, 2017 9:56 am

Re: CGT on house sale.

Postby andytw » Fri May 10, 2019 11:28 pm

Yes to the above
Thanks..appreciated.


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