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Posted Wed, 08 Feb 2023 20:50:08 GMT by
i cant work it out can anyone help me and my wife bought house in 1996 for 36000 we lived there until 2013 we bought a new house and lived in the new house between 2013 and 2023 we rented the original property we now want to sell it for market value at £130000 we both work and pay 20 percent tax how much will my capital gains tax be each? thanks
Posted Tue, 14 Feb 2023 15:45:11 GMT by HMRC Admin 2
Hi,

We cannot work this out for you.  

The guidance below includes a calculator that will help you work out if there is Capital Gain Tax to pay.  

Tax when you sell your home

As the property is jointly owned, two calculations are required, one for you and one for your wife.  

You will be entitled to private residence relief for the period of ownership, where the property was your main residence. If a Capital Gains Tax liability arises, you have 60 days from the completion date to report and pay the tax, otherwise penalties and interest will be charged.  

At the end of the calculator, you can register for a capital gains account, where you report and pay the tax due.

Thank you.
Posted Wed, 15 Feb 2023 02:08:27 GMT by
Sadly in 2020 you could have claimed letting allowance of up to £40,000 each which is well over the gain, you can still claim this if you also lived there whilst letting it out. Previously you could also have added more time (than 9 months) lived there when calculating the private residence relief ratio. Roughly: 2023-1996 = 27 years. You didn't live there 10 years. But you can add 9 months back, so you're looking at about 0.333 multiplier on the amount owed. 130000-36000 * .333 and divided by 2 for joint ownership... Just over £15k each You get £12,300 tax free capital gains each until this April when that limit halves! CGT for people at the 20% level on houses is 18% - the sale might take you into the 40% level, I'd ask a tax advisor... If your query was to roughly work out if it's expensive/worth it then my rough maths might help you decide. 18% on the rough estimate is £600 each... Not much given the total gain. A sale in 2020 world definitely have meant no tax. Do the maths in detail or ask a tax advisor.
Posted Thu, 16 Feb 2023 12:38:54 GMT by
Hi, Message for Damion Yates, How did you get the figure 0.333 please?
Posted Fri, 17 Feb 2023 00:54:11 GMT by
They didn't live there for around 9* out of 27 years, 9/27 is 1/3rd (0.33). This is the private residence relief. You don't pay capital gains on property whilst living there, you do for the proportion when not. *They don't state months in the query, so they'll need to do the calculations more accurately, Dec vs Jan makes a notable difference. The rules also allow you to kind of fictitiously add 9 months to your time lived there. Also the purchase price and sale price can be tweaked. The base cost is the actual price spent buying the house. You can add costs such as major refurbishments like an extension, stamp duty (you don't pay tax twice), solicitors fees etc. Then the sale price is also less fees. This'll narrow the total gain a bit. HMRC Admin 2 is correct, they should work this out themselves or request professional assistance. It's not exactly trivial and not the sort of thing to simply ask on a forum for somebody to do the maths, especially when lacking loads of the details that only they know. I replied as I've gone though this just before 2020 and looked into all the nice (legal) tax avoiding things we could. My estimate might be useful if they're considering options. That tax bill will keep increasing of the price rises and add time goes by when not living there.
Posted Sun, 28 Jan 2024 23:19:41 GMT by
Good afternoon, I inherited a property in the Czech Republic from my father who passed away in March 2020. I want to sell it and buy a flat in the UK. The estimated capital gain on the property is £46k. I would like to ask about: 1. How do I determine the value of the property upon my father’s death? The valuation that I have is based on the purchase price from Aug 2019, half a year before his death and I believe the price increased quite significantly from the date of the purchase to the date of his passing. 2. Also, as part of the inheritance settlement, I inherited the property but I had to pay a significant cash settlement to the other 2 parties (inheritors). It was a condition of the inheritance and it was written in the document. I do not believe that can be used in the capital gains calculation, however, as that settlement was about £20k, my real gain is MUCH lower. Would that be considered within the cap gains calculation? 3. What document do I need to provide for the valuation of the property at my father's death? Can I use Czech valuation experts from the official body of the experts and use that as evidence of the valuation as of my father's death? 4. If I Pay a Czech capital gains tax of 15% (which I believe I will not pay due to the exemption mentioned below), will I pay only the difference (13%) in the UK? Some additional information. I am a higher-rate tax payer. I am a tax resident in the UK. The property is in the Czech Republic. My father was a tax resident in Czechia and he was Czech. I wish to bring the proceeds to the UK. I do not have any capital losses. The tax due in Czechia is 15%, however, most likely I will pay 0% as the Czech law allows a capital gains exemption if you plan to use the proceeds to purchase a primary residence (including in the UK). Thank you!

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