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MarianC
MarianC, Solicitor
Category: Law
Satisfied Customers: 777
Experience:  Expert
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I am selling my council flat in London. I got a £100,000

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I am selling my council flat in London. I got a £100,000 discount when I bought it . Do I pay capital gains on the amount I actually paid for it or the amount before the discount..? Thankyou.
JA: Where are you? It matters because laws vary by location.
Customer: London, as I said.
JA: What steps have you taken so far?
Customer: I don’t know what you mean, the flat is under offer...can you answer the question.
JA: Sorry. Please ask it again.
Customer: Can’t you read, my question is above
JA: Anything else you want the Lawyer to know before I connect you?
Customer: no it’s a simple question.

Hi, I take it that the property is your main residence and you do not own any other property?

Andrew

Customer: replied 12 days ago.
No it is rented out that’s why my enquiry is about capital gains
Customer: replied 12 days ago.
No I don’t want a call thanks.
Customer: replied 12 days ago.
Sorry I should have said.

Good evening thank you for question.

If the flat is not your only or main home, then you will pay CGT on any gain. The gain is based upon the actual purchase price paid and not the value without the discount.

Kind regards

Marian

Customer: replied 12 days ago.
Thankyou
Customer: replied 12 days ago.
How do I do the calculation, what percentage do I pay, is it related to my general income.?

There is a toolkit on HMRC website,

https://www.gov.uk/tax-sell-property/work-out-your-gain

This will take you through the steps.

Please let me know if you need any further assistance.

Marian

Customer: replied 12 days ago.
Thank you that is helpful. I just did it and arrived at an amount. One last question, they asked if the seller sold it to me ‘less than market value to help me’ I answered yes to that as I got the £100,000 discount. They did not ask how much less I got it for. Do they ask for the actual amount at any point or do they just do an approximation?

Thank you, ***** ***** not think that question is relevant as there was no sale to help you, you were entitled to that discount.

Customer: replied 12 days ago.
Thankyou very much, really helpful.

Thank you, ***** ***** need any further help today?

MarianC, Solicitor
Category: Law
Satisfied Customers: 777
Experience: Expert
MarianC and other Law Specialists are ready to help you
Customer: replied 12 days ago.
No that’s fine Thankyou.

Thank you, ***** *****