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Hi.If you sell the property which I'm assuming isn't a furnished holiday let for £370,000, having paid £161,000 you will make a gain of £209,000. You can deduct the purchase costs (legal fees, stamp duty, survey fees etc) and the seliing costs (legal fees, selling agent fees, etc) from the gain. The £54,000 purchase price of the other property will be taken into account in calculating the gain if and when that property is sold.Assuming the property has never been your main home, you will only qualify for the annual CGT exemption of £11,100 assuming the disposal takes place in the 2015/16 tax year which starts on 6 April. That will leave you with a taxable gain of £197,900.There are two rates of CGT, 18% and 28%. The rate or combination of rates that you will pay will be determined by the level of your income in the tax year that you sell the property. Assuming you do so in 2015/16, one of the following scenarios will apply:1 If your income in 2015/16 including the net taxable gain is £42,385 or less, then all the gain will be taxable at 18%.2 If your income in 2015/16 excluding the net taxable gain is more than £42,385, then all the gain will be taxable at 28%.3 If your income in 2015/16 excluding the net taxable gain is less £42,385 but more than £42,385 when you add the net taxable gain, then part of the gain will be taxed at 18% and part will be taxed at 28%.If you sell the property to your daughter, you will be treated as having sold it to her at the open market value even it it was sold to her at a discount. The gain cannot be heldover until a subsequent sale by your daughter as the propertry isn't classed as a business asset.I hope this helps but let me know if you have any further questions.
I understand therefore that if I sell the property on to my daughter,
I will have to find the money myself from somewhere else to pay the due tax on any gain made on the property, as she will be the one benefiting from the equity,she will be in fact gifted the equity achieved as her deposit.
How long is one given to pay tax due following the sale of a property?