UK Tax

UK tax questions? Ask a UK tax advisor for answers ASAP

Connect one-on-one with {0} who will answer your question

Approx 12 years ago i built a new house for my mother in law…

Customer Question

Good evening approx 12 years...

Good evening approx 12 years ago i built a new house for my mother in law for which she paid a nominal rent.unfortunately she passed away 3 years ago ,the house is now rented privately my question is if we sell our main house and move in the rented house and declare it as our main residence can we sell at a later date and avoid cgt

Submitted: 10 years ago.Category: UK Tax

Show Less

Ask Your Own UK Tax Question

Answered in 1 minute by:

3/12/2013

UK Tax Professional: TaxVince, Accountant replied 10 years ago

TaxVince, Accountant

Category: UK Tax

Satisfied Customers: 975

Experience: Chartered Accountant >20 years + Qualified IFA

Verified

TaxVince :

Hi there

TaxVince :

Thanks for the question.

TaxVince :

Firstly when you sell your current house you are not charged cgt as you will get main residence relief against all the gains if this was your main residence during the all the time of ownership.

TaxVince :

Secondly, when you move in the second home and become your main house, you are not charged cgt for the period the property will be your main residence. CGT workings work like this: if say your total capital gains on selling your second home is £100,000 this gain is spread over the years of ownership, say 10 years then the gains is spread £10,000 per year. The gain relating to the period the property become main residence - all the gains relating to this period is exempt from capital gains tax. The gains relating to the period the property was not your main residence is taxed. However there are additional exemptions which you may claim if you qualify like the last 36 of ownership is treated as tax free, and letting relief which may be applicable. However i guess you can see the principle applied when computing the capital gains on the eventual sale of second home.

TaxVince :

Hope this helps. IF you have any further comments, please let me know. IF you are sorted, please could you rate the question before you go.

Regards

TaxVince :

Hi there. Im just wondering if you have any further comments, please let me know. IF you are sorted, please could you rate the question before you go.

Was this answer helpful?

Yes

How JustAnswer works

Describe your issueThe assistant will guide you

Chat 1:1 with an uk tax professionalLicensed Experts are available 24/7

100% satisfaction guaranteeGet all the answers you need

Related UK Tax Questions

Hi Tony, this is a Capital Gains Tax on property question.

Hi Tony, this is a Capital Gains Tax on property question. My client lives with her mother (age 90) and my client owns half the property. She will inherit a 1/3 of half when her mother dies- i.e. 4/6.… read more

Tony Tax

Tax Consultant

High School or GED

7,089 satisfied customers

I bought my home in 1983. For 10 years it was the only house

I bought my home in 1983. For 10 years it was the only house I owned though I lived in rented accommodation elsewhere during the week. In 1993 I bought another house & lived in it (& nominated it is m… read more

Tony Tax

Tax Consultant

High School or GED

7,089 satisfied customers

House inherited June 1996, value £65,000. It has been let

House inherited June 1996, value £65,000. It has been let out for 13 years of the 17 years of ownership. There have been enhancement costs of about £20,000. Are any of the following relevant? Indexati… read more

Sam

Accountant

Higher Officer HMRC

7,004 satisfied customers

If my mother gifts me a house which is not her main residence

If my mother gifts me a house which is not her main residence does she or I need to pay CGT on it at the time of gift? If I later sell it do I pay any CGT?… read more

Tony Tax

Tax Consultant

High School or GED

7,089 satisfied customers

12 years ago my mother transferred ownership of her house to

12 years ago my mother transferred ownership of her house to me but continued to live there. 8 years ago I bought a house in London and lived there until 12 months ago, since when it has been rented o… read more

Tony Tax

Tax Consultant

High School or GED

7,089 satisfied customers

My boyfriend and I are buying a home together. We both own

My boyfriend and I are buying a home together. We both own our own houses for the last 8 and 10 years respectively and have lived separately until now. In order to raise money to buy the new house, my… read more

TaxVince

Accountant

Master's Degree

975 satisfied customers

I have sold a flat that was left half to me and half to mum

I have sold a flat that was left half to me and half to mum by my father. When mum went into care she transfered her share of ownership to me. The council deemed the flat to be wholly mine and so pay … read more

taxadvisor.uk

Accountant and Tax Practitioner

Chartered Certified Accountant - FCCA

2,249 satisfied customers

I have identified a new home at a good price although my existing

I have identified a new home at a good price although my existing home which I own outright is not on the market. I am considering the purchase of the new house by financing it from my savings with a … read more

taxadvisor.uk

Accountant and Tax Practitioner

Chartered Certified Accountant - FCCA

2,249 satisfied customers

L bought a house with a side plot, with the hope of getting

l bought a house with a side plot, with the hope of getting planning permision to build on the side plot. I let the house at the moment but am hoping to sell the house that i live in and move into thi… read more

taxadvisor.uk

Accountant and Tax Practitioner

Chartered Certified Accountant - FCCA

2,249 satisfied customers

My wife and I own 2 homes, a house and a flat (lease). They

My wife and I own 2 homes, a house and a flat (lease). They are approx same market value. Would we be better off (eg from possible CGT in the future) if we each owned one separately? I am concerned th… read more

Sam

Accountant

Higher Officer HMRC

7,004 satisfied customers

10 years ago my mother transfered her house to me, but still

10 years ago my mother transfered her house to me, but still resided there, on her death 3 years ago, inheritance tax was paid on the property ,i would like to nominate this property as my main reside… read more

Tony Tax

Tax Consultant

High School or GED

7,089 satisfied customers

Hi. I have recently had a house built in the back garden of

Hi. I have recently had a house built in the back garden of my main home. I want to move into this new build and rent out my main home on short term tenancy agreements. As I am not planning to sell ei… read more

Tony Tax

Tax Consultant

High School or GED

7,089 satisfied customers

hi guys, would appreciate some advice on a CGT issue we have

hi guys, would appreciate some advice on a CGT issue we have in our family. my uncle bought a flat around 1979. he subsequently got married to a gold digger and quickly divorced. in order to stop her … read more

Andrew Baker(baktax)

Personal Tax Adviser

High School or GED

756 satisfied customers

If I sell a property and give the total gain to my son to buy

If I sell a property and give the total gain to my son to buy a house do I need to pay any capital gains tax?… read more

Tony Tax

Tax Consultant

High School or GED

7,089 satisfied customers

My and I are thinking of selling our nominated main residence

My and I are thinking of selling our nominated main residence and moving to our second home which has been used for our own private use for the past 15 years. We purchased it for £80,000 and it is now… read more

Tony Tax

Tax Consultant

High School or GED

7,089 satisfied customers

A house is to be built on land gifted to me, my brother and

A house is to be built on land gifted to me, my brother and sister by our mother, she will then live in the new house rent free for the rest of her life and sell her original property and gift the pro… read more

Tony Tax

Tax Consultant

High School or GED

7,089 satisfied customers

Hello, My question is regarding capital gains tax when

Hello, My question is regarding capital gains tax when you own two properties. My wife and I are resident in San Francisco (and rent). However, we own a house in London (we are UK citizens but plan to… read more

Sam

Accountant

Higher Officer HMRC

7,004 satisfied customers

Mother gave son property in 1994, carried on living there until

Mother gave son property in 1994, carried on living there until 2005, then resided in nursing home until death last week. do not understand tax implications re IHT and CGT. What would be date of benef… read more

Sam

Accountant

Higher Officer HMRC

7,004 satisfied customers

Disclaimer: Information in questions answers, and Show Less

Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

JustAnswer in the News:

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.WMatteson, 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.
BonnieChesnee, SC

Great service. Answered my complex tax question in detail and provided a lot of additional useful information for my specific situation.
JohnMinneapolis, 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.
OrvilleHesperia, 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!!!!
AlexLos 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.
GPHesperia, CA

< Previous | Next >

Meet the Experts:

Sam

Accountant

7,004 satisfied customers

26 HMRC expertise, PAYE, Self Assessment ,Residency, Capital Gains, CIS ask for Sam Tax

bigduckontax

Accountant

1,480 satisfied customers

FCCA FCMA CGMA ACIS

TEAP007

Tax Preparer

759 satisfied customers

Fully Trained Inspector of Taxes / District Inspector/ Team Leader/ Offshore Consultant/ 41 years

Andrew Baker(baktax)

Personal Tax Adviser

756 satisfied customers

35+ years experience in income tax, CGT, non-residence

berduchwal

Accountant

669 satisfied customers

Qualified accountant and bookkeeper running my own practice since 2008.

Clare

Solicitor

149 satisfied customers

25 years exeperience as a high street solcitor

Mrs-Tax

Tax Adviser

59 satisfied customers

Law Degree, 19 years in UK Tax.

< Previous | Next >

Show MoreShow Less