UK CGT ? Option 1 vs Option 2


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Option 1
Primary residence bought less than a year ago for £650000. Spent 30000 doing it up. Stamp duty was 22500. Estate agent 8000, solicitor 1500. Could sell for 800000 now

Option 2
2 investment properties, rented out.
Property 1 - bought 2 years ago for 360000. 2000 per yer service charge. Stamp duty 18000, est agent 4000, solicitor 1500. Could sell for 480000 now
Property 2 - bought 2 years ago for 390000. 1000 per year service charge. Stamp duty 21200, est agent 4000, solicitor 1500. Could sell for 430000 now.

Total income is 42000 per annum (rental from option 2 investment properties and small pension). 69 year old single female.

Which of these 2 options will I come out best with, in terms of CGT ? I want to buy another property but not sure which option will help me most. Thanks in advance
 
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Fidget

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There doesn't seem to be much difference between the two. Main residence doesn't usually attract CGT on sale, but since it's been purchased less that a year ago and been renovated, it'll probably be subject to CGT as having being bought to do it up and sell it.

By my reckoning, you'd have a chargeable gain of around £212k on option one, and £210k on option two, before deducting the annual exempt allowance, assuming it is available.

Also assuming that total income is before personal allowance is applied, you'd have a little bit of the basic rate band left that your chargeable gain on property sale would be charged at 18%, the rest would be charged at 28%.
 
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There doesn't seem to be much difference between the two. Main residence doesn't usually attract CGT on sale, but since it's been purchased less that a year ago and been renovated, it'll probably be subject to CGT as having being bought to do it up and sell it.

By my reckoning, you'd have a chargeable gain of around £212k on option one, and £210k on option two, before deducting the annual exempt allowance, assuming it is available.

Also assuming that total income is before personal allowance is applied, you'd have a little bit of the basic rate band left that your chargeable gain on property sale would be charged at 18%, the rest would be charged at 28%.
Thank you very much
 

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