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