Have Tax Questions? Ask a Tax Expert for Answers ASAP
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.
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.
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%.