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taxadvisor.uk
taxadvisor.uk, Chartered Certified Accountant
Category: Tax
Satisfied Customers: 4984
Experience:  FCCA - over 35 years experience as a qualified accountant (UK based Practitioner)
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investment property selling tax spilt on freehold property

Resolved Question:

investment property selling
tax spilt on freehold property and 2 leases holds
is there and advantage on the value % set to the freehold or leases
from a tax point of view
freehold owned by me and my wife, we own a leasehold each

many thanks
Submitted: 3 years ago.
Category: Tax
Expert:  taxadvisor.uk replied 3 years ago.
Hello and welcome to the site. Thank you for your question.

Please clarify for me

You refer to the property being an investment property..
Has the property ever been your only and main residence?
Has it been investment property all the time?

Many thanks
Customer: replied 3 years ago.

it has not been our main residence


28 years rented out

Expert:  taxadvisor.uk replied 3 years ago.
Keith, thank you for your prompt reply.

As the property has never been a main residence/owner occupied and always rented out, it makes no difference whether the property is freehold or leasehold.

Freehold is jointly owned - your gain would be chargeable to CGT on 50/50 basis.
Leasehold properties - owned in individual names, the gain would be chargeable to the individual.

Your question is
"is there and advantage on the value % set to the freehold or leases from a tax point of view"

In my considered view, it would make no difference as such...as all gain would be subject to CGT after gains annual exempt amount.

I hope this is helpful and answers your question.


If you have any other questions, please ask me before you rate my service – I’ll be happy to respond.

taxadvisor.uk and other Tax Specialists are ready to help you
Expert:  taxadvisor.uk replied 3 years ago.
I thank you for accepting my answer.

Best wishes.