CGT - help!

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    CGT - help!

    Hi,

    We are trying to work out whether we should sell our property now or rent it out and buy somewhere else but are unclear on the CGT liabilities.

    My wife before we were married purchased a 35% share in a shared ownership property worth 285k in 2008 (sole owner and occupant).
    In 2010 I moved into the property. In 2012 we jointly staircased and bought the remaining 65% share of the property to own 100%
    The property was valued at 315k.

    We are now confident that the property is worth 480-500k (significantly undervalued last year). We are thinking of renting the property out and buying somewhere else. If we do that and sell the property in the future are we going to have a significant CGT expense and would it be better to sell up now?

    For example if we sold it in 2016 versus 2017 or 2018 and the property was worth 600k what would our CGT expense roughly be?

    I’m aware that we are exempt from CGT for the years we have lived in the property and for the last 3 years of ownership.

    Thanks for your help

    #2
    You are exempt from CGT for the period of self occupation plus 3 more years after date of moving out from the property. If you move out today and sublet for 3 years , you will be exempt up to July 2016. But you can also claim a lettings relief up to 40K if you decide to sublet for a longer period than the 3 years grace period.

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