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I'm selling a house - advice please.

Discussion in 'General Chat' started by Darren, Aug 8, 2017.

  1. proactive

    proactive Enjoying a drop of red.

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    Fair point.

    Obviously it's up to you whether you choose to answer this or not on here but as you have lived in rented for so long, do you actually need to buy now? What advantages would this bring to you over and above continuing to rent and having a modest extra monthly income?

    Just being devil's advocate.
     
  2. Darren

    Darren Well-Known Forumite

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    Hi Proactive you do have a good point and me and the misses are giving this some consideration because it would give us some nice savings, i really wanted to buy the house i am in mainly as inheritance for our kids, having said that two of the kids have there own properties and our youngest is just getting into full time employment. Selling and adding to our savings is beginning to look better and better.
     
  3. John Marwood

    John Marwood I ♥ cryptic crosswords

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    What to do with savings is a continual problem with low interest rates

    Many have bought a property to let out ....
     
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  4. 1JKz

    1JKz Well-Known Forumite

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    This very thing is wot one as bin debating for many a year.

    I hear some good* but mostly bad**.

    *stuff
    **stuffs
     
  5. John Marwood

    John Marwood I ♥ cryptic crosswords

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    If it's a trend i generally do the opposite

    But hope is not a hedge

    A hedge is where you hide your krugerrands

    Until the autumn
     
  6. 1JKz

    1JKz Well-Known Forumite

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    I'm a bank half full type-a-guy, as opposed to an ideas half empty type-a-guy.
     
  7. John Marwood

    John Marwood I ♥ cryptic crosswords

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    Typewriters!

    Brilliant

    Buy Buy Buy
     
  8. 1JKz

    1JKz Well-Known Forumite

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    Bye.
     
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  9. Darren

    Darren Well-Known Forumite

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    I got some legal advice about this and thought i would post it here as it might be something someone else might need to no so here goes.


    "No problem with the questions. Yes that is correct, as this is not your principle private residence (the home you live in) you will be subject to CGT on the sale.(The figures for example i gave were the house value was 90,000 upon probate and is now 110,000 in value)
    The profit with those figures would be £20,000 and everyone gets an ‘annual exemption’ in 2017/18 against CGT of £11,300. This means that the first £11,300 would be tax free and the balance of £8,700 would be subject to CGT at 18%/28% depending on your other income for the year.

    In 2017/18 you can earn up to £45,000 at the basic rate band (18% CGT) therefore with your new employment and state benefits you receive it is likely you would only be taxed at 18% providing you have no other income in the year to 05/04/17. Any income about this would mean (28% CGT)

    One way to mitigate the tax would be, if you are married, to transfer 1/2 of the property into your spouses name. You would then also have their £11,300 ‘annual exemption’ to use against any profits. I.e.) £20,000 profit would be split equally, £10,000 each, which would be covered by both ‘annual exemptions’ of £11,300 and therefore no tax payable.

    It would likely cost a small fee to transfer the property through a solicitor. You would also need to ensure you and your spouse sold/sell no other capital items in the year 2017/18
    No problem with the questions. Yes that is correct, as this is not your principle private residence (the home you live in) you will be subject to CGT on the sale.
     

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