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Dear Property Forum, I have a property, un-mortgaged, no chain and used to be our primary house. However, we've now rented it for 2 years to good tenants who have asked whether they can extend for a further 2 years. The yield on the property is 4.5% on a value of £700k. Is there a market for selling tenanted properties of this value, and if there is how do I access it? Or, do I keep the property tenanted and incur capital gains in the future upon selling? My preference as it stands is to sell the property without capital gains. Any help and advice would be most appreciated! Thank you, Dalton

Hi, I'm looking at selling a property that was gifted and am trying to determine if CGT needs paying on it. Property was gifted in September 2016 to 2 people split 50/50 ownership. Value in 2016 ~250k Value now 2019 ~265k So based on 7.5k profit (15k / 2), minus costs ~3k each and minus CGT allowance (12k per person) I work out that no CGT would be payable. However the property has been let for most of that period (Feb 2017 - now). So I'm not sure how this works CGT wise. Question: I'm getting a little confused if we would get letting relief and residence relief and if so how would it be applied? Any enlightenment would be much appreciated Thanks Lewis

Sure I've seen the answer to this somewhere, but can't find it on here anywhere or from Googling. We're approaching the end of our first tax year as a limited company and have a few property purchases under our belt. Although the accountant will do the submission, I'd like to get my paperwork correct beforehand, so, of the legal costs of the purchase, what is allowable as an in year expense and which only count towards the capital gains in years to come? Thinking of things like stamp duty; searches; solicitor fees; additional fees for ltd company mortgage; bankruptcy checks etc, etc.

Capital Gains Couple of queries - 1 - Is the '£11k freebe' mentioned in all Capital Gains allowances discussions, just the standard state allowance everybody gets before paying any tax, or an additional allowance on top? 2 - Does annual overall inflation (RPI or CPI not just housing inflation indexes) not have any impact on Capital Gains? If annual inflation RPI/CPI equals say 3%PA, and I buy at £200k (including all expenses) and sell 10 years later at say £250k, even without compounding the interest, I would need £260k to have the buying power of the £200k 10 years ago, so have actually made a £10k loss not a £50k gain.

Hi, I have a loss of about £50k in capital gains losses. Am I right in understanding that HMRC no longer allow losses to be carried forward indefinitely and I will just have to kiss that money goodbye? One option is to sell other properties which would allow me to use the loss before it "expires", but doesn't seem like a very smart idea in general... Are there any other options that I'm missing? This is a pretty bitter pill to swallow if I can't use the losses as and when I wish to sell up in future. Many thanks!

Hi everyone, Need some urgent advise so if anyone can help I'd really appreciate it? So here is the situation and scenario... Home owner with a mortgage with large area of land which is all part of my property Applied for, paid and successful in planning application for a 2nd house to be built on that land. So Planning Permission for a 2nd house has been granted. Developer made us an offer to purchase the house and the land... we accepted the deal although it was 20k lower then we expected. 11 weeks later he is now telling us we need to split the deeds before he can progress further. Originally he was a cash buyer but know I believe he is having a little financial difficulty. Again I believe he is now looking to purchase the house via a mortgage and then cash for the land... probably the reason why he wants two deeds to purchase from us? Or is he trying to cut costs in tax at our expense?? So the advise we need really is what are the downsides to this recent development in the deal... for us? The main concerns in my mind (but not sure so that's why I am here) are: A) do we pay capital gains if we do this? B ) how long does this normally take? (to split the deeds) C) what is the process we now take (who do we contact first? Current mortgage company then solicitor I presume? Anyone else? Who next?) Any help and advise is really appreciated David

Good afternoon I had a question regarding capital gains allowances. I am a higher tax payer, but my wife is on a lower band. I am buying a property with which I'd hope in the next few years I'll be able to take out £22000ish (2 peoples CGT allowances). If the mortgage was placed in my wife's name only (for income tax reasons), and I put my self on the mortgage nearer the selling time ( to get two CGT allowances) would I be subject to paying stamp duty again? On the other hand, if I placed myself on the mortgage now but owned say 10% of the house, will income tax be divided proportionally 90/10? Would we both then get a full £11000 allowance on CGT. Accounting is a nightmare. Whatever way I think I have it right the government seem to have found another way to extort me. Thanks in advance Gareth

Hi all, Can anybody recommend a good accountant who has significant knowledge and preferably experience of property investing themselves in the Northampton/Milton Keynes area? I have found a couple of local ones through Google but would value a recommendation. Many thanks, Wes.

Hi I am remortgaging my portfolio and have a couple of queries re Capital Gains Tax. 1 As I am releasing equity on an increased valuation, will I be liable for Capital Gains ? If so at what rate ? 2. One of the properties we lived in for 11 years, then let it for 15 years. Does this mitigate the tax ? We have been a little out of touch on the latest tax developments and so would appreciate any advise/help Thank you Andrew West A.West Property 01223 277277

Do you own assets that will eventually be passed on to your children? Are you worried about inheritance tax? The problem — capital gains tax (CGT) & inheritance tax (IHT) Many parents throughout the UK wish to transfer assets to their children now to avoid inheritance tax (IHT) in the future and we receive many calls from clients and non-clients who have heard about lifetime transfers. Basically, if you transfer assets up to the IHT threshold and survive for seven years after the transfer, then that transfer will not form part of the IHT liability upon your passing. Unfortunately, however, parents still have to pay capital gains tax (CGT) on any transfers made between them and their children, even if the transfer is a gift. HMRC deems that any gifts of assets are liable for CGT at market value. If an asset is valued at £100,000 and is given to a child for no consideration, then the £100,000 is what is used to determine the CGT liability. This causes people a huge headache as they know that their assets may be subject to IHT if they do not act quickly, but even if they do, their assets are subject to CGT. Can you relate to the above? A real life client example — John passing assets to his son James For the purpose of this article we are going to name my client John to protect his identity. John has £1.5m of assets, of which £1m is in residential properties and £500K is the net asset value of his trading business. He wishes to set up his son James (20) in business to give him a head start in life as university is not on the agenda for him. John thinks about transferring all of the residential properties and the business to his son so that he can leave the UK for a sunnier climate. John knows that making such transfers will help him mitigate IHT if he survives for seven years afterwards. At the time of writing the transfer limit was £325,000 and the IHT threshold upon death is also £325,000. This means that James would have to pay 40% tax on any excess over £750,000. Ultimately this would mean selling off some assets. Transfers to mitigate CGT and IHT As we have identified, there are £500,000 nets assets in his business. John can transfer the business to his son and claim gift relief, meaning that John does not pay CGT but his son will have a deemed cost of £0. This means that James will have to pay more CGT in the future — he will pay CGT not only on the increase in value of the business during the time he has owned it, but also the deferred amount due when it was gifted to him. An example of how gift relief works was included in this article. When it comes to the residential properties, John considers a transfer up to the lifetime transfer value of £325,000, half of the residential property value, but then realises he would have to pay CGT upon such a transfer. Remember, however, that John has an annual capital gains exemption of £11,100, which means that any gain below this amount would be CGT-free. John could therefore consider transferring one or two properties to his son per year to take advantage of this allowance. Practical steps you should now take to mitigate IHT and CGT It is one thing to understand the theory but it is another to put it into practice. This is why I have written a step-by-step guide to implementing this strategy: Identify the nets asset value of your trading business assets and transfer those using gift rollover relief Transfer assets over time that are not trading assets to utilise your capital gains exemption

Do you own assets that will eventually be passed on to your children? Are you worried about inheritance tax? The problem — capital gains tax (CGT) & inheritance tax (IHT)Many parents throughout the UK wish to transfer assets to their children now to avoid inheritance tax (IHT) in the future and we receive many calls from clients and non-clients who have heard about lifetime transfers. Basically, if you transfer assets up to the IHT threshold and survive for seven years after the transfer, then that transfer will not form part of the IHT liability upon your passing. Unfortunately, however, parents still have to pay capital gains tax (CGT) on any transfers made between them and their children, even if the transfer is a gift. HMRC deems that any gifts of assets are liable for CGT at market value. If an asset is valued at £100,000 and is given to a child for no consideration, then the £100,000 is what is used to determine the CGT liability. This causes people a huge headache as they know that their assets may be subject to IHT if they do not act quickly, but even if they do, their assets are subject to CGT. Can you relate to the above? A real life client example — John passing assets to his son JamesFor the purpose of this article we are going to name my client John to protect his identity. John has £1.5m of assets, of which £1m is in residential properties and £500K is the net asset value of his trading business. He wishes to set up his son James (20) in business to give him a head start in life as university is not on the agenda for him. John thinks about transferring all of the residential properties and the business to his son so that he can leave the UK for a sunnier climate. John knows that making such transfers will help him mitigate IHT if he survives for seven years afterwards. At the time of writing the transfer limit was £325,000 and the IHT threshold upon death is also £325,000. This means that James would have to pay 40% tax on any excess over £750,000. Ultimately this would mean selling off some assets. Transfers to mitigate CGT and IHTAs we have identified, there are £500,000 nets assets in his business. John can transfer the business to his son and claim gift relief, meaning that John does not pay CGT but his son will have a deemed cost of £0. This means that James will have to pay more CGT in the future — he will pay CGT not only on the increase in value of the business during the time he has owned it, but also the deferred amount due when it was gifted to him. An example of how gift relief works was included in this article. When it comes to the residential properties, John considers a transfer up to the lifetime transfer value of £325,000, half of the residential property value, but then realises he would have to pay CGT upon such a transfer. Remember, however, that John has an annual capital gains exemption of £11,100, which means that any gain below this amount would be CGT-free. John could therefore consider transferring one or two properties to his son per year to take advantage of this allowance. Practical steps you should now take to mitigate IHT and CGTIt is one thing to understand the theory but it is another to put it into practice. This is why I have written a step-by-step guide to implementing this strategy: Identify the nets asset value of your trading business assets and transfer those using gift rollover relief Transfer assets over time that are not trading assets to utilise your capital gains exemption

Hi everyone, We've just moved home and have rented out our old place. I'm about to remortgage to release some equity and was thinking of adding my wife to the deeds. As it was a residential property previously I don't think I am liable to any capital gains tax. Is this correct? Are there any other implications to my wife and I tax wise?

The government announced that it will charge capital gains tax (CGT) on gains made by non-residents disposing of UK residential property, from April 2015. The charge will come into effect in April 2015 and apply only to gains arising from that date. Does anyone know how the value of your property will be determine on April 2015? Should a valuation of your property be assessed around this date? Any recommendations on the best way to do so? Thanks. DT