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PortsmouthLaw
PortsmouthLaw, Solicitor
Category: UK Law
Satisfied Customers: 255
Experience:  I have been a Solicitor since 1981 with experience in property, landlord & tenant & wills & probate
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My wife and I bought a rental property in July 2008 for 70000.

Resolved Question:

My wife and I bought a rental property in July 2008 for £70000. We spent some monies doing it up but have no receipts to prove this. We separated in 2009. I have to fill in a financial resources form for the divorce and am unsure of the Capital Gains Tax that would be due from the sale of the property if the value were £95k. Can you advise?
Submitted: 5 years ago.
Category: UK Law
Expert:  PortsmouthLaw replied 5 years ago.

PortsmouthLaw :

Hi There was a time when you could set the cost of capital improvements against your liability to Capital Gains Tax, but no longer. You bought for £70,000, add to this the cost of acquiring the property such as surveyors and solicitors fees. You then have the base value. (say £72,000). If you sell for £95,000, deduct the cost of selling such as estate agents and solicitors fees to give the net sale proceeds (say £92,000) . The gross gain is thus £20,000 (92k-72k). Deduct your individual CGT allowances of £10,100 (?) each and there would in these circumstances be no tax to pay.

PortsmouthLaw :

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