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JediMaster
10-10-2004, 10:39
Anyone here know the in's & out's of Capital Gains Tax?

Have you had a house & sold it (after doing it up) for some £ÃÆ ’‚£Ãà¢Ã¢â€šÂ¬Ã…¡Ãƒâ€šÃ‚£... If you had to pay Capital Gains Tax who worked it out for you.. & how did you work it out?

Any tips or comments on Capital Gains Tax would be great. Looked at Google for sites but unless your a Brain Surgeon its NO good :p: All double dutch to me :D

TIA
mdean
10-10-2004, 10:49
If the house is your normal place of residence - no CGT
JediMaster
10-10-2004, 10:52
If the house is your normal place of residence - no CGT
NO its a Second home & not lived in...Only a DIY project for a friend...
Aragorn
10-10-2004, 11:15
Just going through similar.

Find a good accountant is the best thing - ideally by recommendation - they know what you can and can't claim and should be able to save you their fees in reduced tax.

HTH
Escapee
10-10-2004, 11:46
I could be in a similar situation soon, I have been told that I can put down the investment property as my main address for 6 months. I will then be able to sell it and get away with capitol gains tax, I can then transfer my address back to my existing premises.

If I ever sell my main residence it will then be subject to CGT.

I have no intention of moving from my main residence so may consider this, if the deal with the second property comes off.

Fingers crossed, I have offered "one pound" for the property! :D
tkiely
10-10-2004, 12:21
Fingers crossed, I have offered "one pound" for the property! :D

Is that on EBAY then??? :)
Graham
10-10-2004, 13:42
I could be in a similar situation soon, I have been told that I can put down the investment property as my main address for 6 months.[...]

Fingers crossed, I have offered "one pound" for the property! :D

Be very careful with this sort of thing, CGT is tricky stuff and if you get it wrong the taxman may well come knocking!

Also I believe if you "undersell" a property for eg one pound, you can still get assessed for stamp duty on the "market value".

If what you were told was not professional advice, I'd strongly recommend getting some!
Escapee
10-10-2004, 15:44
Be very careful with this sort of thing, CGT is tricky stuff and if you get it wrong the taxman may well come knocking!

Also I believe if you "undersell" a property for eg one pound, you can still get assessed for stamp duty on the "market value".

If what you were told was not professional advice, I'd strongly recommend getting some!

It's in the hands of the solicitors, thats where I had the advice from.

The property was subject of a purchase by the local authority. (not quite a compulsory purchase) they took away the access from the property when they built a new road, my grandfather offered the council the land at the time between the property and the old road so they could give the owner an access. The council declined paying 6K for the pice of land and it went as far as the European court and the local authority settled out of court by paying the owner around 50K.

They have ended up with a property they cannot, rent, sell or demolish. The only way they can demolish the property is to seek access through my land, I have told them they can buy the land 6.5M x 11M for 60K or sell me the property for "one pound"

They seem to be a bit desperate now, they have no money to pay to demolish the property even if they did have access to it. The idiots on the council also bought another property in the street, a disused Army TA centre for about 50K, as they were planning to build a school. The school has fallen through and now they are scraping for money, my ex-mayor friend told me they were going to use the money for demolishing the TA centre to also hide the costs for demoloshing the property next door!

The senior public health inspector has visited recently and is not amused, he told the highways department to secure the property 7 months ago. They informed him it had been bricked up, they arrived on Friday and put plywood over 2 of the downstairs windows. The guy from public health is keen for me to acquire the property because he can then chase me with court action if I dont act promptly, he was well pi**ed off because he cant take another department of the council to court as the situation is now.

The property has been open for nearly 6 years with the water, gas and electric still live. :dozey:

I spoke to the guy dealing with asset disposal on friday and he sounded like he has had his backside kicked, he said he has been told to sort it out before the end of the year so he needs a quick solution.

If they let me have it for a pound the council tax payers should be happy, I reckon I will save the council about 50K :D

PS: Underselling is also a problem as part can be treated as a gift, if the seller becomes bankrupt the buyer can be chased for funds!