tibbs
Blogger
Share this content
0
4
692

Capital gains

Capital gains

Friend in question was living in her deceased partners house - the house has now been sold (in tax year ending 2012) and she has received part of proceeeds, split with his son. In the same tax year she sold her rental property. Is capital tax applicable on either of the sales ?  Thank you in advance

Replies

Please login or register to join the discussion.

avatar
By ACDWebb
20th Dec 2012 15:10

Probably for the rental property

assuming it has always been let. If she had previously lived in the rented property then ther might be some relief available over & above the Annual Exemption.

Possibly not for the deceased partners house. It rather depends how she came to receive a share of the proceeds, when the partner died, and how the estate was administered.

There is really insufficient information re either property to give  a better answer.

Thanks (0)
avatar
By tibbs
22nd Dec 2012 15:02

Thanks ACDWebb

The rental was originally lived in - need to find out when and for how long.

The deceased house was inherited via will, proceeds of sale to be split between son and partner

Thanks (0)
avatar
By ACDWebb
22nd Dec 2012 16:21

For

(a) the deceased house any gain will be the increase in value between the value for probate purposes and net sale price.  If death & sale were reasonably close together the chances of there being a substantial gain are probably slim. Whether there are two lots of annual exemption will depend on whether the property passed to her & son equally or just her and she is giving half the proceeds to son.

(b) her rental property, assuming that she lived in it as her main residence sufficient to qualify for main residence relief then a proportion of the gain (period of ownership when used as main residence plus the final 36 months) will be exempt, plus for the proportion of the gain relating to the let period the lesser of:

£40k; orthe proportion of the gain relating to the letting; orthe amount of gain exempt as her main residence.

Thanks (0)
avatar
By tibbs
22nd Dec 2012 17:33

Thanks very much.

I will be advising her to go to a good accountant to sort !

Thanks (0)