Capital gains tax on buy to let?
Capital gains tax on buy to let?
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tight fart

Original Poster:

3,617 posts

304 months

Tuesday 4th November 2014
quotequote all
If you've made say £100k over 10 years on a buy to let property, is the capital gains tax liability calculated only on the year it's sold, or do you add up 10 years relief ?
I think you get roughly £10k a year exemption so is it likey that you wouldn't pay any, or little?

LC23

1,315 posts

256 months

Tuesday 4th November 2014
quotequote all
You only receive the cgt annual exemption from the year of sale. Unused annual exemptions do not roll over year to year.

tight fart

Original Poster:

3,617 posts

304 months

Tuesday 4th November 2014
quotequote all
Thanks

Eric Mc

125,884 posts

296 months

Tuesday 4th November 2014
quotequote all
Are you the sole owner?

Did you have any capital expenditure on the property over and above the original purchase price (i.e. Enhancement Expenditure)?

tight fart

Original Poster:

3,617 posts

304 months

Tuesday 4th November 2014
quotequote all
Joint with the Wife, not spent much on it over the years, it's funny, property hasn't done that well in the last 10 years where the house is, my man maths had hoped we'd get back our money and maybe a bit for our effort.
Then this morning I get an email with sold prices for the area and next door has just made £100k more than I thought it worth.
Now I'm worried about capital gainsconfused it's a funny old world.

Eric Mc

125,884 posts

296 months

Tuesday 4th November 2014
quotequote all
As it's jointly owned, the gain will be split 50:50 with the Mrs and you will both be able to make use of the £11,000 annual Capital Gains Tax allowance for offset against your shares of the gain.

Are you higher rate taxpayers based on your annual earnings?

davidc1

1,648 posts

193 months

Wednesday 5th November 2014
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Just had a bill for 6k for the same....
Bitter pill , but hey ho...