CGT second home?

[dthompso8]

We are selling out main home and moving into Mother-in-laws until we find a house. My wife has another house which she is renting out, I am trying to work out what we would have to pay Capital Gains tax on.
She bought the house in 1995 for £46k, lived in it for until 4 years ago when we bought a house together. It is now worth about £140K, does she have to pay CGT on the difference from the price she paid to what it is now worth, or from the price when we moved out and it was no longer her/our main residence?
What other things can we use to minimise the amount of CGT we have to pay (note we want to use the money to purchase a main residence as we are moving to a more expensive area)?

I have been looking on the web about CGT and I am so confused!!!
Help...

[Tax Accountant]

We are selling out main home and moving into Mother-in-laws until we find a house.

When did you buy this house?

My wife has another house which she is renting out, I am trying to work out what we would have to pay Capital Gains tax on.

When were you married?

She bought the house in 1995 for £46k, lived in it for until 4 years ago when we bought a house together. It is now worth about £140K, does she have to pay CGT on the difference from the price she paid to what it is now worth, or from the price when we moved out and it was no longer her/our main residence?

She used the house as her main residence from 1995 to 2002.

What was your main residence during this time?

Did either of you own another property during this time?

Did you both then buy together and move into the house mentioned in the first paragraph above?

What other things can we use to minimise the amount of CGT we have to pay (note we want to use the money to purchase a main residence as we are moving to a more expensive area)?

Who doesn't? Buying another property has no bearing on the CGT.

I have been looking on the web about CGT and I am so confused!!!
Help...



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Ramnik