Hello, I'm Keith and happy to help you with your question. Firstly, forget the mortgage payments; they do not feature in Capital Gains Tax (CGT) computations. However, I do need to know when you purchased your house with your new partner and whether you made any elections as to which residence you intended to use for Private Residence Relief. Also were you and your partner actually married and what was the original price of the house. Meanwhile, I am researching.
I split up with my previous partner in October 2009 and then purchased my other house with new partner in May 2011.
I didn't make any formal elections in relation to residence for Private Residence relief.
I wasn't married to my original partner, although we had co-habited for 16 years. I am not married to my current partner, although we plan to marry next year in July. My new partner is also a joint owner of our current house
The original purchase price of the previous house was £280,000, hence the £140,000 offer in relation to buying out my half of the house. The mortgage has been paid off within the last 2 months.
I currently have approx. £140,000 outstanding on my mortgage with my current house, which had a purchase price of £205,000.
The first house was purchased in May 2004
Appreciate that you're out at present, if you could respond whenever you get a chance later on today.
Thank you for the information. I understand the applied tax percentage at 18% or 28% and also the 11K personal allowance as I've seen those from the HMRC website.
Would you be able to direct me to the HMRC guidance that refers to the 28/123 calculation? and also where it may refer to the fact that the last 18 months don't count?
Is there a strong case for saying that the tax would apply to gain only, i.e. anything over and above 50% of the original £280,000 purchase price?.