Capital Gains tax on a second property?

[Nymphadora]

My bf has a flat that is rented out atm he is looking at selling it but knows he will have to pay CGT on it. If I was on the morgage too would the CGT be split or would there be a time limit(we assume there would be) and what sort of % tax do you pay (he is higher rate atm.)

TIA

CGT is complicated and depends on a number of things such as whether he has lived there as his primary residence, how long ago, hwo long he has owned it. There is something called taper relief which reduces the bill over time and annual allowances. I think you can only share the liability if you are married or perhaps co-own(ie. both named on deeds).This may help explain but you should probably get it checked by a specialist.

Ta , he hasn't lived in it properly, xwife used to use it and he got it in the divorce about 5 years ago.

I sold a house 4 years ago that I had lived in for 11 years then rented out for 3 and half years. the firs 3 years of renting were exempt from CGs tax, but everythig lizs said sounds familliar with what I was told at the time. Contact your local tax office and speak to someone about it, they will be able to advise you/your friend.

Capital Gains tax changed dramatically in April. There is now no taper relief but the rate has dropped from 40% to, I think, 18%. Definitely need to check this out properly before taking any action.

Thank you!

Just to throw something else in:

It also depends on what you are going to do with the proceeds of the sale, you can sometimes roll a capital gain into another investment and defer the tax.