How JustAnswer Works:

  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.

Ask Sam Your Own Question

Sam
Sam, Accountant
Category: UK Tax
Satisfied Customers: 12769
Experience:  26 HMRC expertise, PAYE, Self Assessment ,Residency, Capital Gains, CIS ask for Sam Tax
Type Your UK Tax Question Here...
Sam is online now
A new question is answered every 9 seconds

Do you have to pay capital gains tax if you sell part of a

Customer Question

Do you have to pay capital gains tax if you sell part of a property you have inherited ?
Submitted: 4 years ago.
Category: UK Tax
Expert:  Sam replied 4 years ago.

Hi Fairview

 

Thanks for your question.

 

Capital gains do need to be considered - as to whether any gain has been made from the sale price less the inherited value price. (So you need to establish the value of your share at the time you inherited it)

 

Costs to transfer the property into your name and fees to sell your share can also be deducted.

 

If what is left still shows a profit (gain), if it is less than £10,100 for this tax year, there will be no capital gains to pay.

If the amount is more than £10,100 - then any amount over and above this exempt limit with be liable to 18% tax.

 

A gain should be declared to HMRC the following 5 April after the sale has taken place - by completing a self assessment tax return to declare all income and a capital gain page completed for the gain made.

 

The tax must then be paid - the following 31 Jan

So if you made a gain on part share that was made Oct 2009

Declare this after 05/04/2010 on 2010 self assessment tax return

Tax must be paid no later than 31/01/2011

 

If you need any help with figures - then let me know

1) Date property inherited and your share of the value at that time

2) Costs to transfer property into your part name (your share of costs)

3) Whether you ever lived in this property since taking part ownership - if so provide dates (as some of the gain may be reduced by private residence relief)

4) Sale price and date sold

5) Costs to sell your part share

 

 

Thanks

 

Sam

 

Customer: replied 4 years ago.

 

The part of the property that I sold was a strip of land to a neighbour for a garden which was sold for £50,000. sold approx 2 years ago

 

Date property inherited 04 2001

 

The value of the property at that time was around £750k the property was solely in my late husbands name but I assume half would of been mine

 

Lived in the property since new 15 yrs

 

Costs I cant exactly remember but around £2,000.

 

Dont know if it's relevent but the other executor would not sign for the property to put into my name unless he was paid £12,500 which he claimed the Estate owed him.

 

Thanks

Expert:  Sam replied 4 years ago.

HiCustomer/p>

 

Thanks for your response

 

So can I clarify a few points

 

The property was in your late husbands name - and when he died who was the property left to ? If just you

How large was the piece of land sold

Was the land fenced off - or have any planning permission obtained by you prior to the sale

 

If the the property was left to you and other person/people

 

Is this still the case - that the property is owned with other people and if not when did this become your sole property

If so what share of the property is yours

Who lives in the property

Was the money from sale of the land split with other people

 

Thanks

 

Sam

 

 

 

 

 

Thanks

 

Sam

 



Edited by SamTax on 11/26/2009 at 1:56 PM EST
Customer: replied 4 years ago.

Yes just left to myself

 

No the land at the time was not fenced off nor did it have any planning permission

 

Roughly around 40' long by 20'

Expert:  Sam replied 4 years ago.

Hi Fairview

 

Thanks for your further response

 

As the land formed part of the enjoyment of the house - and is smaller than 0.50 hectares ( 53819.552 ft²)
- and that it was not separate from the house, or had any planning permssion on it, you have no capital gains to consider, as this sale is covered under private residence relief.

 

See link here for claification.

See Page 5 and Heading Garden or Grounds

 

Thanks

 

Sam

Customer: replied 4 years ago.

Many thanks most helpful

 

one last question the inland revenue have asked for a Capital Gains computation to enable them to review any tax implications as they feel this is deemed chargeable, what is it ??

Expert:  Sam replied 4 years ago.

HiCustomer/p>

 

Thanks for your further response

 

They would want to see the sale price less

the inherited price

Less costs to transfer to your name

Less the costs to sell

Which would have to be done on a proportionate basis - as these figures would reflect the whole property and its land

 

However, along with this, I would write to them and advise that the land was less than 0.5 hectares - had previously been enjoyed as part of the garden - had no planning permission and had not been fenced off - so according to legislation - the sale of garden is not liable to capital gains as covered under private residence relief. And ask for their comments - and add a copy of the capital gains legislation that I gave you a link to-

And advise that you had every reason to believe that you were covered under this legislation.

 

You might want to engage an accountant to undertake this for you - but as a first port of call could address this matter yourself -

 

Thanks

 

Sam

 

 

Sam, Accountant
Category: UK Tax
Satisfied Customers: 12769
Experience: 26 HMRC expertise, PAYE, Self Assessment ,Residency, Capital Gains, CIS ask for Sam Tax
Sam and other UK Tax Specialists are ready to help you
Customer: replied 4 years ago.

 

 

Hi Sam,

 

I have another question for you please.

 

I have a registered limited company in Spain, and have transferred money from that companies bank account to mine in the UK. As drawings wages which ever it should be called.

 

As the money is earned in Spain and Spainish taxes paid would I be liable for any tax in this Country.

 

Thanks

 

Diane.

Expert:  Sam replied 4 years ago.
Hi Diane -

Thanks for your further question -as this is a new topic this needs to be listed as a new question - you can ask me for me to answer if that would be preferred

Thanks

Sam
Customer: replied 4 years ago.

 

 

ok how do I ask for you ??

Expert:  Sam replied 4 years ago.
Hi Diane

Just post a new question starting Dear XXXXXTax - or For Sam Tax - then the other experts will know that you wish me to answer for you

Thanks

Sam

JustAnswer in the News:

 
 
 
Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.
 
 
 

What Customers are Saying:

 
 
 
  • I really was impressed with the prompt response. Your expert was not only a tax expert, but a people expert!!! Her genuine and caring attitude came across in her response... T.G.W Matteson, IL
< Last | Next >
  • I really was impressed with the prompt response. Your expert was not only a tax expert, but a people expert!!! Her genuine and caring attitude came across in her response... T.G.W Matteson, IL
  • I WON!!! I just wanted you to know that your original answer gave me the courage and confidence to go into yesterday's audit ready to fight. Bonnie Chesnee, SC
  • Great service. Answered my complex tax question in detail and provided a lot of additional useful information for my specific situation. John Minneapolis, MN
  • Excellent information, very quick reply. The experts really take the time to address your questions, it is well worth the fee, for the peace of mind they can provide you with. Orville Hesperia, California
  • Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C. Freshfield, Liverpool, UK
  • This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!! Alex Los Angeles, CA
  • Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult. GP Hesperia, CA
 
 
 

Meet The Experts:

 
 
 
  • Andrew Baker(baktax)

    Personal Tax Adviser

    Satisfied Customers:

    756
    35+ years experience in income tax, CGT, non-residence
< Last | Next >
  • http://ww2.justanswer.com/uploads/baktax/2009-7-15_202414_Frame.jpg Andrew Baker(baktax)'s Avatar

    Andrew Baker(baktax)

    Personal Tax Adviser

    Satisfied Customers:

    756
    35+ years experience in income tax, CGT, non-residence
  • http://ww2.justanswer.com/uploads/teap007/2009-01-10_145815_bill_justanswer_for_profile.jpg TEAP007's Avatar

    TEAP007

    Tax Preparer

    Satisfied Customers:

    754
    Fully Trained Inspector of Taxes / District Inspector/ Team Leader/ Offshore Consultant/ 41 years
  • http://ww2.justanswer.com/uploads/BE/berduchwal/2011-6-7_84817_pict0854.64x64.jpg berduchwal's Avatar

    berduchwal

    Accountant

    Satisfied Customers:

    669
    Qualified accountant and bookkeeper running my own practice since 2008.
  • http://ww2.justanswer.com/uploads/JO/Josh2010/2012-4-29_19490_GettyImages80121770B.64x64.jpg Joshua's Avatar

    Joshua

    Lawyer

    Satisfied Customers:

    61
    LL.B (Hons), Higher Prof. Dip. Law & Practice
  • http://ww2.justanswer.com/uploads/RO/Ronaann/2012-3-19_23343_SSL22629.64x64.JPG Mrs-Tax's Avatar

    Mrs-Tax

    Tax Adviser

    Satisfied Customers:

    59
    Law Degree, 19 years in UK Tax.
  • http://ww2.justanswer.com/uploads/TG/TGraham12/2012-7-17_81212_bigstockBusinessHandshake508163.64x64.jpg Thomas's Avatar

    Thomas

    Solicitor

    Satisfied Customers:

    48
    Exposure to general tax issues
  • http://ww2.justanswer.com/uploads/struppiaml/2009-10-9_95150_anthony_business_002.jpg AnthonyL's Avatar

    AnthonyL

    Tax Adviser

    Satisfied Customers:

    19
    ATT, ATII, 12 years tax experience