Only home and rented for 6 months in 7 years of living inside, CGT to pay?

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    Only home and rented for 6 months in 7 years of living inside, CGT to pay?

    Hello,

    Apologies if the question is similar to many others.

    I bought a flat in 2015 and lived inside until today, so about 7 years. I spent 6 months outside UK for work and took the opportunity to let it for the period. The difference in value between 2015 and today is about £50,000. I'm a european and planning to leave the country, because my dad recently died in the country of origin and I need to look after the family down there.

    I have very little knowledge about GCT and would like to understand if I'm supposed to pay it and eventually the amount?

    Regards.

    #2
    You will need to do a tax return within 30 days of sale if you are a UK taxpayer.
    But there should be no CGT to pay.

    While there would be a taxable period while the property was let, you get an allowance for renting your own home, which includes 9 months additional tax free period, which is longer than you rented it out.
    So all of the gain will not be subject to tax
    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).

    Comment


      #3
      I agree no CGT to pay.

      You are liable for CGT but you can claim private residence relief .

      Tax when you sell your home - GOV.UK (www.gov.uk)

      Comment


        #4
        jpkeates,

        Thank you for your help. My understanding is that the 9 months are an allowance for the last period (9 months) before the sale, but again I'm quite confused.

        I let the flat in 2020 for 6 months and after that I got back inside. It is currently my place of residence and only home.

        I found, however, that since I lived outside UK for work during such period of letting there is a partial relief from CGT, because of a clause pertaining the distance from work.

        Comment


          #5
          Gordon999,

          Thank you! These are welcomed news, I'm still confused however about the 6 months in which I let the flat while I was working outside the UK. I think I read that these can be claimed as well, because I was away for work, but am unsure.

          Comment


            #6
            The nine months is simply a number to be added to the number of months that you lived there.
            If you owned the property for 10 years, lived in it for 6 and let it for 4, before the residential relief, you would have 48 months taxable gain and 72 months gain with no tax to pay.
            After the relief is applied, you would have 39 months taxable gain and 81 months gain with no tax to pay.

            The 9 months don't apply to any particular period, they're just an element of the calculation.
            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).

            Comment


              #7
              Thank you so much! Great news!

              Comment

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