From: "dp" 
Newsgroups: uk.finance
Subject: Re: Capital Gains Tax on second home
Date: Mon, 12 Jul 2004 00:08:57 +0100

> > I am looking at selling a second home I own which my mother has lived
> > in for the past 6 years.  I was hoping to use the cash made to move to
> > a better home or improve my current home.  The house is in the north
> > of England and should sell for around 80,000 pounds.  Do I really have
> > to pay the tax man around 32,000 pounds from this sale.  Do I not
> > already pay enough tax through pretty much every aspect of my life!
> > So my question is there any way round this?  Either by putting my
> > current house souly in my wife's name (joint currently) or the second
> > home in wife's or mothers name.  Any suggestions or creativity would
> > be appreciated.
>
> You only have to pay tax on the gain not the proceeds. What was the value
> when you aquired it? You can laso deduct taper relief and your personal
CGT
> exemption for the year. No way round it really.


If you have two homes and have lived in both, you can nominate which one is
counted as your home for CGT purposes. Decide which house has increased its
value most, nominate that and pay CGT when you sell the other house. Details
on the Inland Revenue site.