webby v7 slipperwagon

iTrader: (2)

What are the loons in charge of our country, charging in the way of tax on the sale of a second home. I've just sold a house, to pay for my grandmothers medical fees (she lives in Australia) as her scumbag sons and daughters wont do a thing for her. But the IR are'nt interested in that, so i have to pay tax on the sale, but can i claim for anything to try and claw some money back. Any help appreciated, iv'e tried so called pro's on the matter but they dont seem to know anymore than i do

dpb

gosh i wonder whether our little Dahlink will lower the level at which you pay inheritence tax on your first inherited building now prices are dropping

webby v7 slipperwagon

iTrader: (2)

It's not inherited, it's a house i bought as an investment, but due to my Grandmothers scummy children i have to sell to make sure she is looked after as she has no medical insurance. Or i suppose i could just leave her to die.

jods

Eeeerrrrm ?

Grandmothers Children is your Mum or Dad / Aunties or Uncles.

Seems strange to refer to them as her children an not your parent / other

richardg

you pay tax on profit don't you - not on the sale value...in which case that is likely to take you into the 40% tax bracket if you're not already there. i would assume 40% on the profit if i were you.

in order to calculate profit, add up your initial costs, then maintenance costs, any improvement costs etc etc and ask an accountant/property professional which of the above and the "running" costs you've incurred are tax deductable and take that away from the sale value (less sales expenses of course)

Leslie

Congratulations on being so responsible and taking care of your grandmother. I hope you can somehow shame the others into doing the same.

Les

dpb

Mine was actually a rhetorical addition Webby - apologies for barging in !

The Chief

*******

Tell you what mate bob over to UK Business Forums - the UK's most active help and advice forum for owners, managers and entrepreneurs of small businesses and startups.

and ask the same question.
some clever bods on there.

If you want me to ask the question (if you dont want to sign up) i will do

J4CKO

iTrader: (1)

Webby, just trust in Karma.....

jaytc2003

iTrader: (1)

what about renting out the property and getting a steady income to pay for the bills or do you need the cash in a lump sum?

Kieran_Burns

iTrader: (1)

I would think he is rightfully trying to distance himself from them due to their reprehensible inaction.

Brit_in_Japan

You will be liable for Capital Gains Tax, not income tax. CGT is payable on the difference between what you sold it for minus what you paid for it, i.e. your profit. You have a £9,600 CGT allowance to factor in too.

So for example if you paid £100k for the property and sold it for £200k, you would be charged CGT (at 18%) on £90,400 = £16,272

webby v7 slipperwagon

iTrader: (2)

Thanks for that, appreciated.

webby v7 slipperwagon

iTrader: (2)

Before any more cruisers, jump on to to air there sarcastic comments, i'd like to put you straight on the matter, and into your own puddle of self induldgent gratification. My Grandmother has a very AGGRESSIVE FORM OF CANCER, her medical costs are soaring and because of this none of her so called children (my aunts and uncles) ok jods. Have all decided it is not there responsibilty it's someone else's. My mother has spent a vast amount of her savings, the only one to do so. She is 65 retired and using the money she saved, to carry her through retirement, to cover the medical costs. So the best thing to do is for me to take over the costs, or my mom will end up penniless (and living with me, ha ha) and she is stressed out already. So i posted on here for some helpfull advice, not sarcastic idiotic comments on such a serious matter. So hang your head in shame if you are thinking of hijacking the thread for your own pathetic treat. Rant over.

The Chief

Got your pm

Posted it for you mate

PaulC72

Firstly let me say fair play to you mate if only more people cared for others then the world would be a better place.

Secondly if you do a search either the Website of the UK government : Directgov site or the main one I think you will find all the information you require, although the CGT answer posted above may be all you need.

Alot will depend on if you have lived in the property in the last 3 years iirc.

Will

Good luck webby mate, and fair play f#or selling your home to help out your gran, hats off to you mate. And dont listen to these bellends on here.

Flatcapdriver

He's absolutely correct but what I don't understand is your Grandmother's position in Oz? Is she not covered under Medicare (BUPA type equivalent) for her treatment? Failing that, is she still a UK citizen because if so there will be reciprocal arrangements in place to cover medication or alternatively she should be covered under the Pharamaceutical Benefits Scheme (PBS) for cancer treatment.

Personally, I wouldn't declare any CGT exposure in this instance if I was to allegedly sell a property to pay for healthcare but that's just me.

Flatcapdriver

Just remembered you'll also get tapered relief on a second property depending on how long you've owned it. Google it up as its a couple of years since I was involved in that market and I've had a few glasses of wine so my recollections won't be that accurate.

webby v7 slipperwagon

iTrader: (2)

Thanks for all the advise guys. Appreciated.