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thank you for your reply
I seemed to have missed putting the 1st part of my letter to you.
Hello, my name is Susan,
I have a capital gains question.
I was on my own, in my house (No.3) and have had it on the market, on and off since 2009. The stairs are the problem and I do not need the three bedrooms. I am now a 'housewife' and do not pay tax.
I do not understand what is mean't by 18 month time allowance, would you explain further. Also as I do not pay tax presently could I use my personal allowance in any way?
The 18 month rule is that for the last 18 months of ownership you are deemed to be in residence wvwn if this is not the case. It is a CGT concession.
CGT is levied at 18% or 28% on the gain after deduction of the Annual Exempt Allowance of 11.1K. Its effect on a non tax payer is that the basic tax band raises the 18% CGT threshold to GBP 31765 of the gain, anything above that is taxed at 28%.
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Sorry, I am not getting it.
so if i sell the little one before mine will I pay cgt.
lets say £60,000
how would it affect my partner?
Here we go again!
60K - 30K / 2 = 15K gain each
15K * 11.1K = 3.9K, tax at 18% = GBP 702 each [may be more for your partner depending on his income including the gain in the year of sale].
yes that is what I got it to.
but he only owns one house?
ahh, so he will also have to pay cgt on half a house? lol
maybe we should move in as planned then we wouldn't pay anything. If we did, would there be any time tome limit before we could sell
is there any way to find this out for sure?
Thank you for your help.
I am sorry I didn't respond last night but I fell asleep!