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Capital Gains Tax On Second Home

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2Margaret | 19:35 Sat 31st Oct 2015 | Business & Finance
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Owned a small second home jointly with my husband for four years. Sadly he died December 2014 and I am now selling the property. I realise I will have to pay capital gains tax on any 'profit' above a certain amount but someone mentioned that there might be some relief for the period my husband was joint owner. Before I approach an accountant, does anyone know if this is likely to be the case.
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The amount of CGT you are liable for is probably quite small (unless it is in London or one of the few places where property prices have rocketed between 2010 and now), and it may end up being zero once you utilise your own personal annual CGT allowance. The principle is that there is a CGT liability on the uplift between what the second home was bought for, and what...
21:31 Sat 31st Oct 2015
Can your solicitor who handled matters after the death of your husband not advise you. ? Don's see why an accountant needs to be brought into matters.
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Thank you Sir Oracle - I'm afraid not I did not require the services of a solicitor as property and any investments etc were all joint so it was not necessary to go to probate.
The amount of CGT you are liable for is probably quite small (unless it is in London or one of the few places where property prices have rocketed between 2010 and now), and it may end up being zero once you utilise your own personal annual CGT allowance.

The principle is that there is a CGT liability on the uplift between what the second home was bought for, and what it sells for (less the selling costs like legal and estate agent).
If you owned the property as joint tenants (as seems likely from your comment about transfer to you of his share), the total gain is:-

50% of the selling price now minus 50% of the buying price in 2010 (this is your share of the capital gain),

plus 50% of the probate value at December 2014 minus 50% of the buying price in 2010 (this is the capital gain of your husband's share until his death).

Your personal annual CGT allowance in the current tax year is £11100, so deduct that, assuming you don't have other capital gains that you have realised this tax year.

CGT is then liable at a rate of 18% on any residue, unless you are a higher rate income taxpayer when it is 28%.

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Capital Gains Tax On Second Home

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