How much CGT

A question about : How much CGT

Hi could someone give me a rough estimate of cgt liability please,

Moved into house Oct 2002 cost Ј84500, No paperwork to support this.

Moved out 2006, parents moved in, we moved into theirs, Remortgaged in 2008 to BTL as advised by broker, to allow parents to live there never have rented out.

Brought their house same time. So have owned two home since 2008.

Parents are going to retirement property so have sold house for Ј137000.

I dont work, husband is a basic rate tax payer, both own house.
This is quite a worry, also after paying mortgage back, and clearing debts, how does the tax get paid, can it me done monthly ?

Thanks in advance for any help x

Best answers:

• lets say the house you moved into in 2002 is called 'A' and cost 84,500
  this house is jointly owned with your spouse?
  why is there no paperwork; was it a normal purchase?
  you swapped properties with parents on an informal basis in 2006 and you moved into house 'B'?
  you bought house 'B' in 2008 with a BLT mortgage although you actually lived there
  you have now sold house 'A' for 137,000
  is that right?
• Hi yes House a is owned with spouse, no paperwork (not that i can find)as the mortgage was held in ex husbands name, a transfer of equity took place to on divorce to me and hubby.
  yes we swapped on an informal basis with parents in 2006, house A was remortgaged to a btl and we bought house B with a repayment mortgage which we currently live in, which all happened in 2008.
  House A sold for Ј137000.
  sorry for any confusion.
• well the way it might work would be this
  'A'
  gain would be 137,000 - 84,500 = 52,500
  also deduct the buying and selling costs ; say 2,500 (probably more but this will show how it is worked out)
  so gain is now 50,000
  you are entitled to PRR private residential relief for the period you lived there plus the last 18 months
  this should be worked out in months but approximately this means
  period of ownership = 12 years
  PRR relief = 5.5/12 x 50,000 = Ј22,916
  so gain is 27,084
  you each have a cgt allowance of 11,000
  so the final adjusted again would be 5,084
  so you each have a capital gain of 2,542
  which would be taxed at 18% or 28% depending upon your income
  so 457 as you don't work
  depending upon how much your other half earns could be between 457 and 711
  ; of course if your buying and selling costs were higher than 2,500 that would reduce the tax due a bit.
  did you totally move out of house 'A' in 2006? because if it could be argued that house 'A' was still your principal residence until 2008 then that would increase your PRR relief and so reduce the tax further
• Hi yes we did, so no further deduction, but thank you very much for your help, that is no where near what I was imagining.