Capital Gains Tax Planning for Residential Landlord
Our client, a residential landlord, was in the process of selling their rental property and had contacted EQ to calculate what the remaining funds would be after taking in to account all legal expenses and capital gains tax due.
How we helped our client
While preparing the calculations, our Private Client team discovered they could reduce the capital gains tax payable as our client held the property jointly with his spouse.
This property had once been our client’s principal private residence however his spouse had never lived in the property. We suggested that the spouse transfer their share of the property to our client prior to the sale in order to obtain the maximum principal private residence relief and lettings relief available. This resulted in a tax saving of around £14,000.
It is worth noting that this substantial reduction in capital gains tax would not have been achieved had the client not contacted our taxperts prior to the completion of the sale of the rental property.
For more information or to discuss further, please contact the Private Client Taxperts.