Hi - really hope someone with more knowledge than I am is able to help me on this subject please which I'm helping an older family member with. I've tried to be as clear as possible with the situation and ask the right questions but please feel free to ask clarifying questions if any more information is needed.
June 2014: Person A purchases property X for 230K in June 2014 and lives in it as their sole property in London. Person A works in London too.
December 2014: Person A purchases property Z with new husband in East Anglia. Person A’s name is on the deeds on this property and they own half the property each. Person A moves to live in East Anglia as their main residence and continues to work there. Purchase price of this property Z is 280K.
December 2014: Property X in London is lived in by Person A’s daughter (Person B) rent free. Person A visits monthly and stays at Property X on a recurring basis for next few years.
June 2021: Person B moves out of Property X in London and property is vacant apart from a monthly visit for a few days at a time by Person A.
May 2022: Person A sells their share of property Z in East Anglia to her husband. Property Z is valued at this time at 380K and Person A is removed from the deeds. Person A alone had spent 6K on a porch & new bathroom at property Z.
September 2022 (tbc): Person A plans to sell property X in London for 305K (they have spent 6K upgrading kitchen and bathroom) and together with proceeds of this sale plus proceeds of sale of property Z in East Anglia, purchase a new property Y for 515K in London which will be their second home for another few years until Person A moves to London eventually on more of a permanent basis.
q. 1 What tax (including rate) is due (if any) by Person A on her sale of her share of property Z
q. 2 What tax (including rate) is due by Person A on proposed sale of property X
q. 3 What tax (including rate) is due (if any) on purchase of Property Y
q. 4 What tax (including the rate) should Person A have paid on purchase of Property Z in December 2014.
q. 5 Are there any ways to mitigate any of the tax due or are there any potential changes to Person A’s circumstances which would reduce the amount of tax due.
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