Capital Gains with Lettings relief

Are you entitled to Private Residence and Lettings Relief when selling a house - Capital Gains

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A property was purchased in January 1998 for £21,500.00 and used as the main family residence for 12 years. 

It was then rented out until the property was sold in December 2016 for £91,594. As this was a private sale (to a family member) there were very little selling costs. (Rented out for 7 years)

The property was jointly owned and any proceeds of sales were gifted to the family member.  

How is CGT calculated? 

Can Private Residence Relief and Lettings Relief be claimed?

How does the gifted deposit affect the gain?

Does the chargeable gain get split 50/50 between both owners and each declare the gain?

Other income for this tax year in question (16/17) is a loss of £16k.

Many thanks in anticipation of your assistance.

 

Replies (8)

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By Accountant A
29th Jan 2018 21:04

Have a word with an accountant. They'll sort that out for you without too much bother.

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Out of my mind
By runningmate
29th Jan 2018 21:06

What was the open market value of the property when it was sold for £91,594 in December 2016?
RM

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Replying to runningmate:
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By MizzJulie
29th Jan 2018 21:23

The family member paid the market value.

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Johny Fartpants Picture
By johnny fartpants
29th Jan 2018 23:39

How is CGT calculated? Market value less purchase cost

Can PPR & Letting Relief be claimed? Yes & Yes (if both the joint owners lived in property as main home, presumably so between 1998 & 2010)

How does gifted deposit affect the gain? I'm not sure I understand the question

Does the chargeable gain get split 50/50 between owners? Yes

Note, PPR & letting relief should bring the gain to nil in this case.

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Replying to johnny fartpants:
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By MizzJulie
30th Jan 2018 08:19

Thank you.

It did come back to me eventually, been a couple of years since I did it at uni and something I've never come across since. My mind just went blank!

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Replying to johnny fartpants:
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By MizzJulie
30th Jan 2018 08:20

Thank you.

It did come back to me eventually, been a couple of years since I did it at uni and something I've never come across since. My mind just went blank!

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By bernard michael
30th Jan 2018 09:59

Dare I assume the rental income was declared by both owners during the 7 years

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Replying to bernard michael:
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By MizzJulie
30th Jan 2018 11:23

Yes, that was all declared

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