CGT, a little help please

[Grant76]

My father & his friend bought a small weekend place in 1995 for just under £100k. Due to it not really being used by either family they have decided to sell up.

They have a offer in of £130k, which for a quick sale they have decided to take.

Both are in the higher tax bracket. How much should they expect to pay in CGT?

Thanks

[trickywoo]

http://www.hmrc.gov.uk/rates/cgt.htm#1

Details here.

At a guess, given standard allowances / rates, they would be looking at approximately £1,500 to pay each.

[touching cloth]

If they have wives then very possible to also utilise their (unused) CGT allowances, this would in all likelyhood bring the liability to zero.

[Eric Mc]

touching cloth said:

If they have wives then very possible to also utilise their (unused) CGT allowances, this would in all likelyhood bring the liability to zero.

Not only wives, but if the property was in the name of more than one person (it doesn't matter what the relationships were), then the the gain on the disposal is split equally between all the owners.

[Grant76]

Most helpful guys, really appreciate you coming back.

His accountant will be looking after it but as he is on holiday I was asked to get a rough idea.

Thanks again

[touching cloth]

Eric Mc said:

touching cloth said:

If they have wives then very possible to also utilise their (unused) CGT allowances, this would in all likelyhood bring the liability to zero.

Not only wives, but if the property was in the name of more than one person (it doesn't matter what the relationships were), then the the gain on the disposal is split equally between all the owners.

Indeed I was taking the allowances for the 2 co-owner friends as already in play, but their 2 allowances would not on the face of it cover the "profit". By introducing a third or even fourth allowance (by use of tax free transfers to their wives, assuming not already listed as co-owners) then the entire amount could be covered by the allowances. It may be more effort than it's worth however as the liability will not be huge anyway.