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F E Smith
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Category: Tax
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I have two houses I bought one in 2002 ( with mortgage) for

Customer Question

I have two houses I bought one in 2002 ( with mortgage) for my son who lived in it for 5 years . Since then it has been rented out. I return tax returns every year. I want to sell the house in the future so I can retire. What is my capital gains situation? I also purchased a property for my parents in 2005 ( with mortgage) they lived in it rent free until my parents went into a home and subsequently died (4 and 2 years ago) While in the nursing homes I rented out this apartment ( and also did tax returns) For the last 18 months I have now lived in this property. What are the tax implications if I sell this apartment? I have tried HM Gov but their leaflets are not specific enough for my needs
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Submitted: 1 month ago.
Category: Tax
Expert:  F E Smith replied 1 month ago.

The Capital Gains Tax on the rented properties is relatively straightforward. You pay top slice capital gains tax on the difference between what you paid for the properties and what you sell them at.

If you were using one of the properties is your main residence that stops the capital gains issue and freezes it at the time you moved in but it does raise a capital gains matter on which ever property you had been living in

Customer: replied 1 month ago.
I am already aware it does on both thankyou. What I wanted to know was how to start working it out so I can make a well reasoned decision on which house to sell and when to do this or should I move into the other house first??? I understand the difference between cost and new value giving rise to increased capital value, but can any tax be offset and how? what about capital expenditure on the property(s)
Expert:  F E Smith replied 1 month ago.

I think this is going to be better referred to UK tax. I shall transfer it for you.

Customer: replied 1 month ago.
I cant rate you until my question is answered. You say you will refer me thank you but I have not heard from anyone and my question remains unanswered

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