We are inching closer to our second plot purchase 

Our thoughts have turned towards financing the build while remaining in our first build 

We have a rental property that we inherited about 15 years ago that’s worth about 150k Selling that would give us the 100k shortfall 

But didn’t want to use that if we would loose a chunk of money on it 

Does anyone know what our tax liability would be 

 

 Thanks 

 

Capital gain is all counted in the year you sell it, and you have to notify hmrc now within 30 days (it used to be the end of the tax year of the transaction.)

 

Assuming it has never been your permanent residence, you are liable for all the gain in value made to be treated as capital gain, less buying and selling expenses.

 

If it's jointly owned then you are each liable for half the capital gain.  you then deduct your capital gain allowance for the year before working out how much tax is due.

 

The rate of CGT you pay depends if you are a basic or higher rate tax payer.

 

If you want some examples just tell us what the actual gain is likely to be, joint or single ownership and basic or higher rate taxpayer.

The house was inherited by my wife 15 years ago Valued at the time at 80k It’s remained in her name Not joint Sounds like a mistake now 

It would sell between 130 and 150 now 

Would there be any advantage putting the house in both names at this stage 

Remortgage and rent it out?

Depends on your wife’s current income. You’ll possibly hit around £30k of CGT if you sell tomorrow but I would do what @Jilly said which is remortgage for £100k which would be at 65% or so LTV, and then transfer the whole thing into joint names (as you mortgage it) and keep for 3-5 years then sell. 

Thanks for the replies 

 

Weve no mortgage on the one we’ve just built so we could borrow 100 k on that 

Though raising a buy to let mortgage on the rental would be a good option 

As we are quite reluctant to get rid of any of our rentals 

They have taken a long time to accumulate 

 

I have just borrowed through Barclays at 3% on a mixed use investment via a ltd co.

 

You may get an even better rate if you do it as individuals but cannot offset the interest.