How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Sam Your Own Question
Sam, Accountant
Category: Tax
Satisfied Customers: 14195
Experience:  26 HMRC expertise, PAYE, Self Assessment ,Residency, Rental Income, Capital Gains, CIS ask for Sam Tax
Type Your Tax Question Here...
Sam is online now

. I have owned a rental property since I inherited it in

This answer was rated:

Hi. I have owned a rental property since I inherited it in 1996. It is divided into three flats. Until recently, the upper floor was occupied by a sitting tenant with his rent controlled. He died in January this year.
The flats are in need of modernising in particular they are serviced by coin operated slot meters which is far from satisfactory.
I have decided that that the costs involved of all this work appear to outweigh the benefits so I am contemplating selling the property. I have been advised that it should sell with vacant possession for £450,000 - £500,000.
I am married but the house is solely in my name.
My question is 'How much can I save , if anything, in capital gains tax'?
Steve M
Hi Steve
Thanks for your question - I am Sam and I am one of the UK tax experts.
1) transfer all three flats into joint names with your wife (as you will not incur capital gains as this does not arise between husbands and wife's and assuming there is no mortgage then there is also no stamp duty) and you also never lived here during your years of ownership to lose out on tax reliefs and would just have the legal costs to make the transfer of the deeds into your joint names.
2) You could sell one flat per tax year to then benefit from x 2 x annual exemption allowance which would be £11,100 x 2
3) Carry out capital improvements - which would then be offset again the gain that has accrued between the sale price and the Inherited price. Of course this will require you to spend money out prior to sale , but then would be reflected in a better sale price. I appreciate you advise that the cost outweigh the benefits - but you would get credit £1 for £1 against the capital gain lessening the capital gain tax position.
Let me know if you need me to expand on any of these suggestions
Sam and other Tax Specialists are ready to help you