capital gains tax on a flat + a lease extension
Discussion
asking you guys for some advice, I'll keep to the facts as I know them.
My wife bought her own flat (in her name only) some 10/11 yrs ago and lived in it for 7 years, then she rented it out for 3/4 yrs and she is now looking to sell.
The monthly rental costs just about covered the monthly mortgage repayments (repayment mortgage).
3/4 yrs ago the flat was valued at 100k but it had a 64yr lease and so we rented it as there were no buyers or sensible offers.
Now the property has a 61 yr lease and still valued at 100k
However we might extend the lease at point of sale so we could sell for 145k (for arguments sake) as we don't have a valuation of the property with a lease 3/4 yrs ago. But we do have written valuations of the value without a lease 3/4yrs ago and now.
How does she stand with capital gains tax ?
My wife bought her own flat (in her name only) some 10/11 yrs ago and lived in it for 7 years, then she rented it out for 3/4 yrs and she is now looking to sell.
The monthly rental costs just about covered the monthly mortgage repayments (repayment mortgage).
3/4 yrs ago the flat was valued at 100k but it had a 64yr lease and so we rented it as there were no buyers or sensible offers.
Now the property has a 61 yr lease and still valued at 100k
However we might extend the lease at point of sale so we could sell for 145k (for arguments sake) as we don't have a valuation of the property with a lease 3/4 yrs ago. But we do have written valuations of the value without a lease 3/4yrs ago and now.
How does she stand with capital gains tax ?
Thanks Eric, someone else stated
if the property has increased in value from when it was first let out to the date of sale, the she would be liable for capital gains tax.
Not from the time she bought it but the time it was first rented out. Hence valuations are needed.
Does this sound correct to you/anyone ?
And How do you pay this tax at the time of sale or in a tax return or some other way ?
if the property has increased in value from when it was first let out to the date of sale, the she would be liable for capital gains tax.
Not from the time she bought it but the time it was first rented out. Hence valuations are needed.
Does this sound correct to you/anyone ?
And How do you pay this tax at the time of sale or in a tax return or some other way ?
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