Dave!

I know there are some pretty shrewd people using the board these days, so come on what do you reckon?....

I've owned this house for 11 years.
I've never lived in it but i've always paid all the council tax and utility bills and it has never been rented out for profit, in other words it's been empty.
For the past 6 years i've been living with my wife at another address (so i'm on the electoral roll at both addresses).
Over this time i've been doing it up (as money allowed) and it's now been sold sstc and will make a £60k + profit over the original purchase price.

Will i have to pay any capital gains tax?
How will the taxman know i've sold it and what the profit was?

Cheers,
Dave.

Stephen Read

If you get a Tax Return to fill in, there is a section on property and that is where you would be expected to declare the facts.

If you don't get a Tax Return, the the tax man wouldn't ever find out as far as I know.

Strictly speaking even if you don't get a Tax Return sent to you you should ask for one, but heh!

I don't know anything about the risks in your case but at least you appear to have your name on the Council Tax lists at that address.

If you end up trying to dodge the tax, keep the money aside in case they come after you for it later.

P.S. There's a war on dontyaknow! We need your £££'s to buy smart bombs and stuff so cough up!

Stevie

The fact that all utility bills are still in your name and paid at this address could be very useful

3times

Dave,

Mail me as per profile and I will give you my mobile number.

I can talk you thru the different scenarios.

Tony

ptholt

I think you will find they can check the profit based on the amounts listed on the sale purchase from land registry.

But you are NOT liable for cgt if its your own main residence, so i think you would have to prove that is the case if you wish to avoid it.


[Edited by ptholt - 3/21/2003 12:12:42 PM]

dsmith

If its not your main residence, legally you have to declare it.

So long as you dont own a second home (or part own, or have your name on a joint mortage etc) I would imagine it should be relatively easy to jusitfy it as your main residence. The paper work (no letting, bills all in your name etc) will exist to support that.

Deano

Dave!

Thanks for your replies chaps.

Tony...YHM!

Dave.

fast bloke

If you sell it, someone will pay stamp duty. Taxman will come running. It would have been 'handy' if you had temporarily spilt from your wife 6 months ago and moved back into the house. Paying utility bills would be a good indicator that this actually happened. Now you have reconciled your differences with the better half you have decided to move back in with her and sell the house. As it was your primary residence you do not need to pay CGT.


If you hadn't split from the wife you would need to tell us how much you bought the house for, as you would get both taper and indexation relief based on inflation before CGT liability is calculated.

Diesel

I really think you can make that work mate - the key was the bills thing. If they are low, say you lived mosly with the g/f / b/f and never cook!

D

mattstant

it has been known to have already been done
i'll say no more

Dave!

Again..thanks for the replies chaps.

Fast Bloke - Mmmm....would have been handy wouldn't it! Cheers for that.

Dave.

se6b

I know very little about this....but as far as I was aware you only pay capital gains if you sell within two years of purchasing. I am likely to be wrong though.

Andy Tang

iTrader: (3)

Don't forget to redirect your bank statements!!