Capital Gains – Am I in Cloud Cuckoo land?

Capital Gains – Am I in Cloud Cuckoo land?

19:39 PM, 24th October 2014, About 7 years ago 15

Text Size

We are trying to work out our Capital gains liability on our buy to let property as are planning to sell it. Capital Gains - Am I in Cloud Cuckoo land

There does not seem to be any clear information saying that we can take off the mortgage (not the cost of the mortgage) off the basic sum.

We bought the property for £56K on a £51K Mortgage and hope to sell for £200K.

£200K-£56k = £144K – paying mortgage back (£51K) =£93K liability before other deductions.

Am I in Cloud Cuckoo land?

If so why should we have to pay capital gains on £51K interest only mortgage?
(I understand from my research about rent relief, CG allowances, costs, etc).

Thanks

Martin

 



Comments

by Si G

18:23 PM, 3rd November 2014, About 7 years ago

Hello Martin, move into the property and sell it as your main residence then you'll pay no cgt, problem solved.

by Mark Alexander

19:38 PM, 3rd November 2014, About 7 years ago

Reply to the comment left by "Simon " at "03/11/2014 - 18:23":

Not true but it could reduce the tax, see >>> http://www.property118.com/capital-gains-tax-relief-on-a-property-you-have-lived-in/
.

by Jason Living

19:51 PM, 3rd November 2014, About 7 years ago

Simon has just demonstrated the danger of taking advice from people on a forum who are happy to volunteer advice which is very wrong and could cost you a lot of money and aggravation. Please engage a decent accountant!

Jason

by Si G

16:58 PM, 4th November 2014, About 7 years ago

Hello Martin, Jason is right in that there is no simple answer and as you know you'll never get two accountants to arrive at the same answer. You mention "we" want to sell so you may be able to claim double cgt allowances if more than one person owns the property. Mark pointed out that there is more too this in his link. I know it used to be the case that one could move in then move out and let but sell within 3 years without paying cgt.

by Mark Alexander

17:45 PM, 4th November 2014, About 7 years ago

Reply to the comment left by "Simon " at "04/11/2014 - 16:58":

That has never been the case, BUT depending on how long the property had been owned for and let for there may have been no CGT payable. That's still the case but the rules are not as favourable than pre April 2013.
.


Leave Comments

Please Log-In OR Become a member to reply to comments or subscribe to new comment notifications.

Forgotten your password?

BECOME A MEMBER