CGT: Principle Residence

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    CGT: Principle Residence

    I bought a property in 1993 which I lived in for 3 years. I then moved into rental accommodation and have let the property I own ever since. I am considering buying another property with my husband and would like to know how I stand wrt CGT if I were to sell my property.

    #2
    1. No cgt while you lived there as ppr

    2. No cgt on last three years of ownership

    3. Lettings relief applies to intervening period
    Steve Sims

    Yardleystar Accountancy
    0870 242 1047

    Email: ssims@yardleystar.co.uk

    Comment


      #3
      Period from 1993 to 1996 is exempt as your only or main residence. A further 3 years are exempt as final 3 years of ownership. Therefore, you have 6 years exempt and 6 years chargeable. All final gains will be apportioned 50/50. The amount of chargeable gains is further reduced by lettings relief equal to your exempt gains restricted to a maximum of £40,000. Any remaining chargeable gains is reduced by taper relief of 30% and also annual exemption of £8,500.

      Therefore, so long as your gains do not exceed approximately £105,000, you will not have any capital gains tax to pay.
      Private advice is available for a fee by sending a private message.

      Comment

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