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Where Taxpayers and Advisers Meet

Property sale following buyout of other investors

rjnewman
Posts:2
Joined:Tue May 03, 2022 2:25 pm
Property sale following buyout of other investors

Postby rjnewman » Tue May 03, 2022 2:43 pm

Hi. I purchased a buy-to-let property with 2 other investors for £80000 in 2004. At that time, my share in the property was 75%. In 2013, I paid £13570 in total to the other investors to transfer their equity to me, using a valuation of £130000 for the property. The title deeds now show me as sole owner.
If I were to sell the property now for £150000, what figure would I use for my cost of acquisition in order to calculate my capital gain for tax purposes?
Any help or advice would be greatly appreciated.

AGoodman
Posts:1738
Joined:Fri May 16, 2014 3:47 pm

Re: Property sale following buyout of other investors

Postby AGoodman » Tue May 03, 2022 3:58 pm

The actual aggregate sum you paid for the property.

You aren't clear if you paid £80,000 or 75% of £80,000 but, if the former, your acquisition cost would be £80,000+£13,570+costs of acquisition (solicitors fees,SDLT) and any capital improvements.

I'm assuming you paid market value for the 25% share even though it was cheaper than you paid for the rest.

rjnewman
Posts:2
Joined:Tue May 03, 2022 2:25 pm

Re: Property sale following buyout of other investors

Postby rjnewman » Tue May 03, 2022 5:20 pm

Thank you for your prompt and very helpful reply.
Yes - I did pay the market value for the remaining 25% but omitted to include this in my original question.
To clarify, my share of the original purchase in 2004 was £60000, and then in 2013 I paid a further £20000 (to cover original purchase cost), plus £13570 (i.e. 25% of the increase in value). I have not included solicitors' fees etc.
Best wishes


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