Rented out own home - CGT liability?

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  • TaxationPete
    replied
    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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  • King_Maker
    replied
    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.

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  • VikG
    replied
    Also if I move back in there while its empty as I want to sell now will this help?

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  • VikG
    replied
    Purchase Price was circa £600k

    Todays Val circa £1m

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  • TaxationPete
    replied
    and the value at acquisition and disposal are, ?? Regards Peter

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  • VikG
    replied
    Property is mortgaged.

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

    Empty for past 6months.

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  • TaxationPete
    replied
    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

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  • jeffrey
    replied
    Is it leasehold? Is it mortgaged?

    Leave a comment:


  • VikG
    started a topic Rented out own home - CGT liability?

    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.

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