CGT on selling property

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    CGT on selling property

    Hi
    I just sold my property and needed some tax advise on what I can claim, heres a breakdown:

    Property Purchased in Dec 2007 for £250k
    Property Sold in July 2017 for £410k

    I lived in the property from June 2008 till May 2009 (9 months)
    During this time I renovated the property, run out of funds and couldn't afford to live there, so moved back in with my parents. So I rented the property out from April 2009 till it got sold in July 2017

    Am I able to claim any PRR or Lettings relief, I have no idea how to work this out?


    Heres my cost:

    Annual Salary 42k

    - Capital Improvement cost 60k
    - Solicitors fee and stamp duty 4k
    - Estate agent fees 3k

    Thanks.

    #2
    Your capital gain will be 410K - 250K ( purchase cost ) - 60K ( renovation cost ) - 4K-3K = £ 93K ( from Dec 2007 to July 2017 ).

    Your capital gains tax to pay = 93K - 11K ( annual allowance ) = £ 82K @ 28% = £ 23K ( rough estimate).

    I think you do not qualify for PPR because "main residence" requires a longer stay than 8 or 9 months and as you say, you cannot afford to live there .

    But you should consult a tax accountant to advise you on possibility of claiming PPR before you submit your 2016/2017 tax return. ( deadline is on 31st Jan 2018 ) .

    Comment


      #3
      If your intention when you moved into the property was to use it as your main residence then PPR is available for the period of actual occupation and the last 18 months of ownership.

      Lettings relief will also be available.

      Comment


        #4
        At the time when you lived in the property did you have the utilities in your name, did you notify your bank of a change of address, what address did your employer have, did you get Royal Mail to redirect your post? There is no requirement that you have lived in the property for any particular period of time but you might need to fight it in court see e.g. http://www.rossmartin.co.uk/private-...tion-to-occupy

        Comment

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