Sale of house any CGT

[bob]

Hi all,

Probably a silly question and i dont think cgt applies here but would like to check.

Bought a house in year 2000 lived here as my main residence until may 2010. I have rented the house out since then on so just over 3 years now. I am thinking of selling the property and am not sure if i would be liable for any gains on the property at all.

TIA

BOB

[November14]

Hi Bob

As you have not lived there as your main residence for more than 36 months, there will be an amount liable to CGT. You will be eligible for Lettings relief to set against any CGT liability on the period, and depending on the amount of the gain this may wipe out any tax due. I would advise that you speak with a Tax Advisor who can help you with the calculations.

Kind regards

Terry

[bob]

Hi Terry,
Thanks for the reply,
So would i be liable for any gains made before i moved out? im assuming i would be liable for any gains made after i moved out. To give an idea of some figures when i moved out in 2010 the house was valued at 235k today it would be worth around 250-260 so around a 15-25k gain throughout the rental period.

[King_Maker]

CGT is based on a straight line - sale price less purchase price etc. The value when you moved out is not relevant.

As the last 3 years of ownership are always treated as exempt, any remaining gain (depending when you moved out) is likely to be covered by some Lettings Relief and the Annual exemption (£10,900 for 2013-14).

Have you read HMRC's Help Sheet HS283 on the subject?

http://www.hmrc.gov.uk/helpsheets/hs283.pdf