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Where Taxpayers and Advisers Meet

Reducing CGT on sale of two properties

trainline
Posts:16
Joined:Sat Oct 02, 2021 4:25 pm
Reducing CGT on sale of two properties

Postby trainline » Wed Dec 15, 2021 5:58 pm

After the deaths of two parents this year my wife and I will have shares of two properties to pay CGT on next year.
On the first which I already owned as a 50% tenant in common, I gifted 25% to my wife.
My wife is a 25% inheritor of the second under her mother’s will (I dont have a share in this one).
My wife has no income, I have a small pension and receive a dividend from a close company though there may be no dividend in the year of the house sales. I usually pay tax at the top end of the basic rate tax band. I can crystallise some losses on shares to offset against CGT and possibly make an allowable employee contribution to my SIPP but is there anything more we could consider, other than staggering the sales across tax years which I don’t think will be possible.
Thanks
T

AGoodman
Posts:1417
Joined:Fri May 16, 2014 3:47 pm

Re: Reducing CGT on sale of two properties

Postby AGoodman » Tue Dec 21, 2021 4:49 pm

What sort of gain are you contemplating?

Higher rate CGT on land is still only 28% so not the end of the world.

If you are really concerned, the sums are large and you have other substantial liquid resources, you could look into making a VCT/EIS investment as both come with tax relief you can sent against your gains. However, you need expert advice and should bear in mind there is a good reason for the relief - these are high risk and highly illiquid investments.

trainline
Posts:16
Joined:Sat Oct 02, 2021 4:25 pm

Re: Reducing CGT on sale of two properties

Postby trainline » Thu Jan 13, 2022 10:45 am

Thank You A.


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