Rented out own home - CGT liability?

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    Rented out own home - CGT liability?

    I am looking to sell my house which I moved out of 4 years ago and is now rented for the past 4 years (although empty for the past 6months),

    What is my CGT liability? Is it 28% on the uplift in last 4 years? since i bought it? or a % of the time i rented against the length of time i have owned it? I moved in around 2000.

    I have looked on HMRC and have not been able to find out what the situation is.

    #2
    Is it leasehold? Is it mortgaged?
    JEFFREY SHAW, solicitor [and Topic Expert], Nether Edge Law*
    1. Public advice is believed accurate, but I accept no legal responsibility except to direct-paying private clients.
    2. Telephone advice: see http://www.landlordzone.co.uk/forums/showthread.php?t=34638.
    3. For paid advice about conveyancing/leaseholds/L&T, contact me* and become a private client.
    4. *- Contact info: click on my name (blue-highlight link).

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      #3
      You would be entitled to PPR and Letting Relief so I suspect there would be no CGT laiblity but without actual dates and values I can not tell you for sure. The value when you let it is not significant as such but the date of the first and last tenant occupation is. Regads Peter

      Comment


        #4
        Property is mortgaged.

        Purchased in March 2000
        lived in till April 2007 then rented out same month til now.

        Empty for past 6months.

        Comment


          #5
          and the value at acquisition and disposal are, ?? Regards Peter

          Comment


            #6
            Purchase Price was circa £600k

            Todays Val circa £1m

            Comment


              #7
              Also if I move back in there while its empty as I want to sell now will this help?

              Comment


                #8
                No, as the last 3 years of OWNERSHIP are always treated as an exempt period ( if the property has been one's residence/main residence at some time) - irrespective of the property's use during these 3 years.

                Comment


                  #9
                  If you sold it next monthe there would be no CGT liability, however there is a maximum Letting Relief of £40,000 and your are already at £36,000.
                  If you continued to rent it out till August then sold it straight away then your CG Allowance would mop up the liability. If the tenant left next month and you sold it in Ausust you would have a CGT Bill of £1200 or so. Moving back in while you sell it would not have you a great deal. Also remember that the costs of acquistion and the sales and legal costs are deductible from the gross gain.
                  Here are the figures for the tenants leaving next month and you exchanging contracts in August 2011.
                  Purchase 600000 14/03/2000
                  Disposal 1,000,000 14/08/2011
                  Total Gain 400,000
                  PRR 350,365 120 137
                  Capital Gain 49,635
                  Lett Relief 40,000 Qual Days 487
                  Net Gain 9,635
                  CG Allow 10,100
                  CGT 18% 0
                  CGT 28% 0

                  CGT Bill 0


                  Regards Peter

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