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 TonyTax Your Own Question

TonyTax
TonyTax, Tax Consultant
Category: Tax
Satisfied Customers: 15707
Experience:  Inc Tax, CGT, Corp Tax, IHT, VAT.
13905389
Type Your Tax Question Here...
TonyTax is online now

My husband has Alzheimers and is a care home. I have to sell

Customer Question

My husband has Alzheimer's and is a care home.
I have to sell a flat that my husband lets through a letting agent.
Can you tell me how to calculate his capital gain?
I do not know how much he paid for the property.
It was purchased around 1996 and is valued today at £80,000
Submitted: 2 years ago.
Category: Tax
Expert:  TonyTax replied 2 years ago.

Hi.

The gain will be calculated by taking the sale price and deducting from that the 1996 purchase price, the costs of buying and selling such as legal fees, survey fees, stamp duty, etc). If the property was ever your husband's main home, then he will quality for a deduction from the gain for that as well as letting relief (letting relief will only be due if the property was his main home for a period).

I hope this helps but let me know if you have any further questions.





Customer: replied 2 years ago.
You have not given me any more help than I have already found for myself.
I was looking for some formula that I could use, such as selling price less purchase price less relief of something because of the number of years the flat has been let.
The property has been purchased for letting only and has never been lived in.
I was also looking to see if any relief was available due to the circumstance of my husband being forced to sell to fund his car.
Expert:  TonyTax replied 2 years ago.

If I had the purchase price, I would be able to calculate the gain for you as I do for many people who come to this site and many of those answers can be found on Google. I can only work with the information I've been given. There is no other information to consider given your husband's circumstances.

Letting relief will not be due as the property was never your husband's main home so the calculation of the gain is very straightforward. The first £11,000 of the gain will be tax free assuming your husband has not used his annual Capital Gains Tax exemption for 2014/15. The balance of the gain will be taxable at 18% or 28% or a combination of the two rates depending on your husband's income level.

There is no relief to reflect the fact that the property is being sold to pay care fees I'm afraid.





Customer: replied 2 years ago.
Where or how do I know when the income is 28% or 18%
Expert:  TonyTax replied 2 years ago.

Take a look here for information on how CGT works on property. You may be able to find out the 1996 purchase price for your husband's property here. The data goes back to 1995.

Assuming that the property is sold in the current tax year, one of the following scenarios will apply:

1 If your husband's income in 2014/15 including the taxable capital gain is £41,865 or less, then all the gain will be taxed at 18%.

2 If your husband's income in 2014/15 excluding the taxable capital gain is more than £41,865, then all the gain will be taxed at 28%.

3 If your husband's income in 2014/15 excluding the taxable capital gain is less than £41,865 but more than £41,865 when you add the taxable gain, then part of the gain will be taxed at 18% and part will be taxed at 28%.







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