Capital Gains Tax seeling property I used to live in

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    Capital Gains Tax seeling property I used to live in

    I'm thinking of selling a property I bought for myself July 2001. I lived there for 5 years but I moved out July 2006 and have rented it out since. It is still my sole property though.
    I bought the property for 65k and the current value is approx 200k.
    I paid 20k for a share of the freehold a few years ago.

    I've read about PPR and Letting relief but i'm not sure if either would apply as i haven't lived in the property myself for over 5 years.
    So i'm not sure if i'll have a big CGT bill to pay if I sold?
    I'm also a higher rate tax payer.
    Thanks for any help

    #2
    You still will not have a CGT liability and due to that change of expenses i.e. the freehold purchase you now have circa £14,000 headroom. Please explain "I paid 20k for a share of the freehold a few years ago.
    " LR applies if you ever lived in the property as your sole private residence. Regards Peter

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      #3
      Thanks for the help.
      A few years ago myself and the owner of the other flat bought the freehold of the pair of flats we own. We now have an equal spilt of the freehold. I think any such fees/home improvements would be deductible from any gains - that's why I mentioned it.

      Comment


        #4
        The freehold cost is a capital item. Repair and decoration are not capital they are revenue and deductible from the rental income. Regards Peter

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