Property accountant

[Tobbiejs]

You
Hi everyone, new here but thankful for all the great information. Looking for some guidance please.
If I were to purchase a property for £400k but pay in instalments of 6x £12k per year and then the final balance of £328k in the 7th year. Would the seller only have to pay CGT on the £328k. Thank you

 

[Scalloway]

Will you have use of the property from the date of the first payment?

 

[UK Contractor Accountant]

Would the seller only have to pay CGT on the £328k.

no - full £400K treated as received on exchange date for CGT regardless of deferral.

 

[Tobbiejs]

no - full £400K treated as received on exchange date for CGT regardless of deferral.

Thank you for the speedy reply. Would you know the time frame with regards to having to pay the CGT

 

[Tobbiejs]

Will you have use of the property from the date of the first payment?

Yes would gain control from day one with the intention of adding value to the property and building a deposit by paying down the principal

 

[MyAccountantOnline]

Thank you for the speedy reply. Would you know the time frame with regards to having to pay the CGT

@Tobbiejs have a read of this https://www.gov.uk/hmrc-internal-manuals/capital-gains-manual/cg14910