How JustAnswer Works:

  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.

Ask rakhi.v Your Own Question

rakhi.v
rakhi.v, Financial Advisor
Category: Tax
Satisfied Customers: 4480
Experience:  Attorney and Financial Expert. Have specialization in Financial Laws.Practice experience of over 13 years
43581946
Type Your Tax Question Here...
rakhi.v is online now

To give you more details, my wife owned the house from 1985

Customer Question

To give you more details, my wife owned the house from 1985 to the present day but she would like to sell it now. She lived in the house and it was her main and only residence from 1985 until 1993. In 1993 she moved into the house which I purchased and her name was put on the mortgage as well as my name. Her mother continued living in my wife's house and paid rent (approx £300 per month) right up until her death in 2010. My wife has spent approx £18000 on her house (new drive, patio, garage doors, double glazing, and recently re-wiring, new glazed back door, new french doors, new kitchen etc). She needs to declare the rent to HMRC though I think it would have been below the threshold for tax. Could you give me a rough idea of the amount of CGT she will pay assuming the house sells for £300,000 roughly.
Submitted: 3 years ago.
Category: Tax
Expert:  rakhi.v replied 3 years ago.
Dear Friend,

Hello and welcome. Thank you for providing us opportunity to help you.

Let me come straight to your question. IF you need to know how much capital gaix that your wife may incur if she sells her proprety for 300,000 would depend on many factors and you will have to work it out in the following manner.

1. To begin with, you will have to know your value of that property in 1983. That means, we need to know the basis -- the cost of that property to your wife.

2. You will add to that ALL the expenses (made solely for the purpose of increase .and / or preservation of value of the property to it.)

For exampla, if the market price of the property when your wife bought it in 1983 is 100,000 and she has made expenses of, say for example, 25,000 on it, then your cost basis for this property would be 100,000+25,000=125,000. If this sells for 300,000, then the gains on this property would be 300,000-125,000=175,000 -- Capital gains would be 28% of this amount of 175,000.

The following is a step-by-step guide to help you arrive at the capital gains calculation.

http://www.hmrc.gov.uk/cgt/property/calc-cgt.htm


I am sure this would help. Please feel free to revert back with a reply if you need more assistance on this.

Warm Regards

What Customers are Saying:

 
 
 
  • Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C.
< Previous | Next >
  • Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C.
  • This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!! Alex
  • Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult. GP
  • I couldn't be more satisfied! This is the site I will always come to when I need a second opinion. Justin
  • Just let me say that this encounter has been entirely professional and most helpful. I liked that I could ask additional questions and get answered in a very short turn around. Esther
  • Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C.
  • This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!! Alex
 
 
 

Meet The Experts:

 
 
 
  • Sam

    Sam

    Accountant

    Satisfied Customers:

    6894
    26 HMRC expertise, PAYE, Self Assessment ,Residency, Rental Income, Capital Gains, CIS ask for Sam Tax
< Last | Next >
  • http://ww2.justanswer.com/uploads/TA/Tax Expert/2013-8-21_231010_sam.64x64.jpg Sam's Avatar

    Sam

    Accountant

    Satisfied Customers:

    6894
    26 HMRC expertise, PAYE, Self Assessment ,Residency, Rental Income, Capital Gains, CIS ask for Sam Tax
  • http://ww2.justanswer.com/uploads/BI/bigduckontax/2013-8-12_222058_1.64x64.jpg bigduckontax's Avatar

    bigduckontax

    Accountant

    Satisfied Customers:

    1772
    FCCA FCMA CGMA ACIS
  • http://ww2.justanswer.com/uploads/TA/TaxRobin/2013-8-28_16186_femalebusinessprofessionalbinderhand11038485.64x64.jpg TaxRobin's Avatar

    TaxRobin

    Tax Consultant

    Satisfied Customers:

    464
    International tax
  • /img/opt/shirt.png taxadvisor.uk's Avatar

    taxadvisor.uk

    Chartered Certified Accountant

    Satisfied Customers:

    2596
    FCCA - over 35 years experience as a qualified accountant (UK based Practitioner)
  • http://ww2.justanswer.com/uploads/MS/MsAM/2012-6-9_16426_anna.64x64.jpeg Anna's Avatar

    Anna

    Teacher, writer, biologist

    Satisfied Customers:

    268
    Great research skills, variety of work experiences, teaching experience.
  • http://ww2.justanswer.com/uploads/PD/pdheslin/2012-6-6_232056_pambig.64x64.jpg pdheslin's Avatar

    pdheslin

    Consultant

    Satisfied Customers:

    51
    20+ years of internet site creation and search engine optimization. Dozens of search tools at my disposal.
 
 
 

Related Tax Questions