Capital Gains Tax, Private Residence Relief

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    Capital Gains Tax, Private Residence Relief

    I was hoping for some advice from people who are knowledgable about CGT and property.

    I have lived in the property for the majority of my ownership. My question is about how long I can let it out for before needing to pay CGT on a proportion of the profit.

    I understand from the guidance on the .gov website that I can get relief for any reason for periods adding up to 3 years, and also for the last 9 months before selling.

    Does this mean that I can let it out for 3 years and 9 months in total, as long as 9 months of that is the final 9 months of my ownership?

    #2
    Do you know anyone who has the details of what CGT rules will be when you eventually sell?
    I am legally unqualified: If you need to rely on advice check it with a suitable authority - eg a solicitor specialising in landlord/tenant law...

    Comment


      #3
      Thanks for replying. I'm doing this calculation with the current financial year's rules in mind. Of course they are liable to change every year, but if I understand this year's rules I will be in a good place to interpret changes to them, should I sell in financial year 2021-22. I understand the relief for the final x months has been in place for a long time, it's just that the number of months has changed. It used to be 36, went down to 18, then down to 9. So, of course bearing in mind that they can change, I'd just like to understand the current rules for now. If you're able to help I'd be most grateful!

      Comment


        #4
        The total capital gains after sale of property is apportioned between the capital gain under ( A) "main residence + 9 months" and under (B) "letting period - 9 months" .

        The capital gain under period A is ( owner occupied ) is exempt for cgt .

        The gain under period B is liable for capital gains tax at 18% or 28%.( after deducting £12,300 for annual capital gains allowance )

        Comment

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