CGT on a property i lived in for 6 years.

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  • CGT on a property i lived in for 6 years.

    I bought a property for £95,000 in 2001 and lived in the property for over 6 years. I then decided to keep/rent this property, re-mortgaging for a new property. I re-mortgaged the property for £175,000 as it was valued at 240,000.
    If i wanted to sell the property now - how much CGT would I have to pay?
    I still have £200,000 outstanding on my mortgage i live in.
    I have always done a self cert on the rented property paying my taxes etc! Any help please?

  • #2
    Originally posted by ethan07 View Post
    I bought a property for £95,000 in 2001 and lived in the property for over 6 years. I then decided to keep/rent this property, re-mortgaging for a new property. I re-mortgaged the property for £175,000 as it was valued at 240,000.
    If i wanted to sell the property now - how much CGT would I have to pay?
    I still have £200,000 outstanding on my mortgage i live in.
    I have always done a self cert on the rented property paying my taxes etc! Any help please?
    What is the current market value of your rental property for sale now ?

    How is the 200000pds mortgage connected to the rental property or are you confused ?

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    • #3
      Value of property that you sell it for now minus £95,000 = profit on the house. You pay CGT on that.

      Charlie

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      • #4
        No The OP lived in the property for 6 yeras so PPR and Letting Relief will apply. Read HS283 on the HMRC web site. We await for the OP to tell us the est sale value. Regards Peter

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        • #5
          The current market value of the rental property is 235,000. The mortgage i have on the property I live in has no connection to the rental mortgage. Both are seperate.

          Comment


          • #6
            Sell today for 235k. Cost 95k. Profit £140k, earned over 11 years, i.e. 12.7k p.a. profit.

            First six years lived in; last three years deemed tax free. Total 9 years.

            Remaining 2 years taxable, i.e. 12.7 x 2 = 25.4k.

            Less letting relief (maximum 40k)

            Taxable gain nil. No tax to pay.

            Comment

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