Bob, thank you for your reply.
Based on information provided this property is a second home and therefore the whole gain becomes chargeable to CGT, I'm afraid.
You would be able to offset the following additional costs against the gain before arriving at the chargeable gain, namely:
- capital costs of improving the property
- costs associated with buying and selling the property - conveyance costs
- agent's fee on sale, if any.
The rest would be chargeable after allowing capital gains allowance (£11k per person).
You could mitigate your CGT payable by transferring an interest in the property to your wife and claiming 2 sets of gains allowance and also making use of lower CGT rate of 18% provided the total income of each owner is at basic rate tax threshold for income tax.
I wish I could give you a more favourable answer.
I hope this is helpful and answers your question.
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