Hello and welcome to the site. Thank you for your question.Please advise- was the property ever your main residence or was it a second home always?
- if it was a main residence at some point, please advise for how long you lived in that property and for how long you have owned that property?
- what was your profit on sale?Many thanks
No it was never my main residence. I have owned it since 2001.
The profit from the sale was £37,000
Thank you for your reply and for additional information.Based on information provided, the whole gain would be chargeable to capital gains tax as it never was your main residence and therefore you would not be entitled to any private residence relief.It would appear the property was jointly owned. You would both get a gains allowance against the gain of £37,000 and the balance (37,000-(2*11,000)) £15,000 would be subject to CGT at 18%, 28% or a combination of both depending on your total income inclusive of your share of the gain (15,000/2) £7,500.If your total taxable income including your share of the gain is up to £31,865 then your CGT on the gain would be 7,500 x 18% = £1,350 per tax payer.You should bear in mind the gain on sale of property is selling price less (buying price plus costs associated with buying and selling the property) and not what is left over after repaying any outstanding mortgage/loan on that property.
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