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Hello, I am Keith, one of the experts on Just Answer, and pleased to be able to help you with your question.
Is this residential property? Is is your sole or main domestic residence?
Right them, bad news I regtet even more so if you never occupied it, please advise.
You will be liable for capital Gains Tax (CGT) for the entire period of ownership less the last 18 months when you are deemed to be in occupation even if this is not the case. You will have a gain on sale of which say 91% will be subject to the tax at 18% or 28% or a combination of the two rates depending on the individuals' income including the gain in the tax year of disposal. The gain is divided by 2, half each and both of you have a non cumolative Annual Exempt Amount (AEA) of 11.3K to offset this.
I do hope that yu have found my reply of assistance.
Sorry, no save to buy a new buy to let within 3 years then the gain can be rolled over and tax deferred. Pension contributions are allowable against Income Tax (IT) not CGT. By making pension contributions your income for IT is reduced thus exposing more at the 18% level for taxation. There is currently an annual lilit of 40K on pension contributions including any made direct by your employer.
You could obtain roll over relief, yes.
Only as roll over relief, yes.
No, only roll over relief to defer the CGT.
You refer to ISAs and SIPPs I assume.
An EIS can reduce the tax.
Here is the guidance from Brewin Dolphin:
'Any gains that are made on investments in an EIS (Enterprise Investment Scheme) are free from CGT if held for three or more years.
If the shares are disposed of at a loss, one can elect for the amount of the loss, less any income tax relief given, to be set against income for the year in which the shares were disposed of – or any income for the previous year – instead of being set against capital gains.
CGT deferral relief is available to individuals and Trustees of certain Trusts. The payment of tax on a capital gain can be deferred where the gain is invested in a share of an EIS qualifying company. The gain can arise from the disposal of any kind of asset, but the investment must be made within the period of one year before or three years after the gain arose. There is no minimum period for which the shares must be held; the deferred capital gain is brought back into charge whenever the shares are disposed of, or are deemed to have been disposed of under the EIS legislation.
The downside of EIS is that generally these types of schemes are higher risk than traditional stocks and shares'
I do hope that you have found my guidance of assistance.
Thank you for your support.