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.
  • Go back-and-forth until satisfied
    Rate the answer you receive.
Ask taxadvisor.uk Your Own Question
taxadvisor.uk
taxadvisor.uk, Chartered Certified Accountant
Category: Tax
Satisfied Customers: 8122
Experience:  FCCA - over 40 years experience as a qualified accountant (UK based Practitioner)
54961312
Type Your Tax Question Here...
taxadvisor.uk is online now

A query re CGT please. First question. My daughter owns a

This answer was rated:

A query re CGT please. First question. My daughter owns a house which she lets. My wife and I bought the house 13 years ago but from the outset it was registered in my daughter's name. Effectively it was a gift. She has never lived in the house. In the event that she sells the house will the circumstances of a 'gift' influence CGT. Peter
JA: Have you talked to a tax professional about this?
Customer: No
JA: Is there anything else the Accountant should know before I connect you? Rest assured that they'll be able to help you.
Customer: I can't think of anything except that we paid cash for the property.
JA: JustAnswer requires a modest payment. You'll see the amount on the next page. It's way less expensive and more convenient than any face-to-face visit.
Customer: Yes I'm still waiting

Hello and welcome to JustAnswer. I’mCustomer a UK qualified accountant. Reviewing your question and will respond to you shortly.
Many thanks

Customer: replied 14 days ago.
What is the CGT allowance for 21/22? Can the cost of repairs, maintenance and updates be made use of to offset tax paid? I understand the tax rates to currently be 20% for standard rate tax payers and 28% for those who pay 40%. Is this correct? Is there anything else I should know?

Thank you for your question.

[Q] In the event that she sells the house will the circumstances of a 'gift' influence ...

[A] No, the fact money was gifted to her makes no difference on CGT payable.

CGT allowance for 2021-22 tax ayear is £12,300. CGT rates are 18%, 28% or a combination of both depending on total income in the year including the gain.

General repairs aand maintennace costs are revenue items and can be offset against rental income. Capital improvements are allowable as costs against gain together with cost of buying and selling e.g. legal fees, stamp duty and agents' fee on selling,

You should report and pay CGT within 30 date of completion. More on this here

https://www.gov.uk/capital-gains-tax/report-and-pay-capital-gains-tax

My aim is to give you a professional service. I hope this is helpful and answers your question.

If you need more assistance, please use the reply box below and let me know. It has been my pleasure to assist you with your question.

Customer: replied 14 days ago.
All clear. Thank you.

Thank you for your kind words..

If there are no other issues I will appreciate if we could regard my responses/answer to this question as accepted.

Many thanks

Customer: replied 14 days ago.
The only detail I am a little concerned about is the case where the tax payer ie my daughter is asked how much did you pay for the property. The strictly correct answer to this would be zero. Do you see this as a problem?

Thank you for your reply.

You paid for the property albeit in the form of a gift to her. YOu should put the cost price (irrespective of who paid for it).

Many thanks.

Customer: replied 14 days ago.
Thank you. That satisfactory concludes my queries. Your service was excellent and most helpful.

Thank you for your kind words.

taxadvisor.uk and 3 other Tax Specialists are ready to help you

I thank you for accepting my answer.

I'm glad I could help you resolve this today. Please follow up here if you have any other questions.

Best wishes.