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TonyTax
TonyTax, Tax Consultant
Category: Tax
Satisfied Customers: 15914
Experience:  Inc Tax, CGT, Corp Tax, IHT, VAT.
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I have sold a freehold of a house. How is capital gains tax

Customer Question

I have sold a freehold of a house. How is capital gains tax charged for this?
Submitted: 1 year ago.
Category: Tax
Expert:  TonyTax replied 1 year ago.
Hi. Did you sell the house with vacant possession, ie were there no tenants in the property when you sold it?
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Customer: replied 1 year ago.

I sold the FREEHOLD of a block of four flats not a lease. for £160000

Expert:  TonyTax replied 1 year ago.
Thanks.

Were there any active leases at the time of the disposal of the freehold? Who was the freehold sold to?
Customer: replied 1 year ago.

yes 4 leases including me and was sold to another lease holder (forced negotiated sale)

Expert:  TonyTax replied 1 year ago.

Thanks.

Leave this with me while I draft my answer. It will take a while so please bear with me.

Customer: replied 1 year ago.

Thanks for your attention. I'm looking forward to you answer.

Expert:  TonyTax replied 1 year ago.
If the property was owned at 31 March 1982, you can use the value at that time when calculating your gain. However, the value at that time will be reflective of the status of the property at the time, ie if there were active leases. In answer to your other question, a freehold is treated as land for CGT purposes.

Assuming you occupied your flat for the entire period of ownership of the lease, you will be entitled to relief from CGT for that part of the gain related to your flat. Take a look at HS283 for more information on main residence relief.

I hope this helps but let me know if you have any further questions.

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