CGT on sold property

[Nasreen]

Hi

Whilst living with my mother in Hertford i purchased a property, i stayed in the property for 3 months. I then got married and moved to my husbands home in the Midlands. In June 2000, i had to sell the property as my father had to pay an out of court settlement to his wife (my step mother), i agreed to pay this on behalf of my father. Thus the house was sold with a capital gain of £50,000. However the proceeds of the house were transfered directly to the buyers solicitor to my father's ex-wife solicitor via my solicitor, this left me with £5,000. Could you please let me know if i still have to pay CGT on the property, even though i didnot recieve the money.

Thanks

Nas.

[DF]

If you owned the property and sold it at a profit then you have a gain wich, if taxable, is assessed on you. It is not relevant that you did not receive the proceeds.

As you did live in the property there may be grounds for claiming Principle Private Residence relief on at least the initial 3 months and last 3 years of ownership but it would really depend on the facts (which you have not made available).

Hope this helps

[Nigel Lord]

Nas

You will be aware that you are already rather late in declaring any gain and subject to tax geared penalties. However, there may be no chargeable gain.

As DF states, you are probably entitled to PPR relief for the period of residence and the last 36 months of ownership.

If during the period of residence you had no other main residence(s) available (and you genuinely lived in the property (i.e. could prove this by council tax registration, electoral role, utility bills, bank statements or other evidence, you will qualify for PPR. It then depends on how long you owned the property to as to whether 100% PPR relief applies.

Please would you supply some further details.

Our firm specialises in this area of taxation and will be pleased to act on your behalf.

Kind regards

Nigel Lord


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