Capital Gain Tax on main home, but let in the past

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    Capital Gain Tax on main home, but let in the past

    Hi all,
    I'm thinking about selling my flat and trying to workout how much capital gain tax I would have to pay.
    ​​Accordingly to the HMRC website the rate is 28% if you let the property out, but I'm currently living there so I'm not sure.

    I've owned the property for 10 years:
    - first 3 years I lived there
    - then 5 years rented out
    - currently living there and I've done for the last 2 years

    I own half of another property, where my ex partner still lives, if that matters for the calculation.

    Any ideas?
    Thank you!

    #2
    The total gain (sale proceeds less purchase price less costs of purchase and sale) is apportioned between the time this was your main residence and when it wasn't.
    Only the time it wasn't your main residence is taxable (with an additional 9 months deducted and treated as though it was your main residence.)

    The rate of tax depends on your income, so it's either 18% or 28% above a certain level.
    When I post, I am expressing an opinion - feel free to disagree, I have been wrong before.
    Please don't act on my suggestions without checking with a grown-up (ideally some kind of expert).

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      #3
      Thank you!

      Comment


        #4
        The first period used as main residence is 3 years plus 9 months after moving away. The second period as main residence is 2 years.

        So out of 10 years ownership , the total capital gain is apportioned 5 years plus 9 months as "main residence and 4 years and 3 months under rental .
        So if the total capital gain is £100K , you become liable for cgt on £ 42.5K for the rental period and if charged at 28% = £12K.

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