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Where Taxpayers and Advisers Meet

Help with a couple of queries re cgt on former home please

Peggysue
Posts:3
Joined:Thu Oct 01, 2020 10:06 am
Help with a couple of queries re cgt on former home please

Postby Peggysue » Thu Oct 01, 2020 10:22 am

Hi, thank you in anticipation of help!
I sold a property oct '19 owned for 34 years lived in for 22 yrs then let for 6 then lived in again til sold.
Property was originally bought with ex Husband 1985 but transferred to me 1995.
Also I purchased some land to rear of property in 2003. Was sold as part of house sale. How does all this affect my computations for cgt on the tax return. I.e can I add costs of land onto the original costs of house/fees etc? Thank you.

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

Re: Help with a couple of queries re cgt on former home please

Postby maths » Thu Oct 01, 2020 3:09 pm

Yes, in principle you add cost of land (plus fees) to base cost of house for CGT purposes. Is the original land plus newly acquired land less than about 1.25 acres in total and was it effectively part of the garden?

If answers are "yes" then more than likely there will be no CGT charge on sale (broadly if chargeable gain £70k or less).

Peggysue
Posts:3
Joined:Thu Oct 01, 2020 10:06 am

Re: Help with a couple of queries re cgt on former home please

Postby Peggysue » Thu Oct 01, 2020 3:37 pm

Thank you very much Maths for your help.
So the Spouse transferable is irrelevant?
I know I can claim all the reliefs allowed before the 2020 changes ( ppr and lettings relief) and all rental income was declared on tax assessments. So if I am correct I am not expecting any cgt due ( due to 28yrs as per and lettings relief)
Thanks again.

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

Re: Help with a couple of queries re cgt on former home please

Postby maths » Thu Oct 01, 2020 4:47 pm

Spouse transferable is not irrelevant. When transfer was effected it transferred to you at no gain/loss to transferor spouse. You then acquired the interest transferred at transferor's original base cost.

Note sale pre 6.4.20 so yes you will get lettings relief.

You don't give figures but 28/34 of gain exempt; and lettings relief also applicable (lesser of £40k and gain attributable to letting period).
Plus annual exempt amount 12,300.

Peggysue
Posts:3
Joined:Thu Oct 01, 2020 10:06 am

Re: Help with a couple of queries re cgt on former home please

Postby Peggysue » Thu Oct 01, 2020 5:33 pm

Thank you again Maths.
Here are the dates/figs

Property purchased 9thApril 1985
Cost £16450
Fees £177

Additional land/garden purchased 2003
Cost £1200
Fees £500

I lived there from April 1985 until nov 2007
Rented out from 2nd Nov '07 until 7th oct
2013.
I lived there again from 7th oct 2013 until sale 3rd oct 2019.
Sale price £240000
Fees £3685

Thank you.


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