disposing of studio lets

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  • Gordon999
    replied
    Assuming you have had the property for 5 years period , ans lived for 2 years in whole house followed by 3 years in one of the studios.

    The estimated capital gain if you sell for £110K less £30K purchase = £80K over 5 years .

    The capital gain for 2 years residence in whole house = £80K x 2/5 = £32K will be exempt for cgt

    For the remaining capital gain of £48K , you can claim 1/3 exemption for residence living in one of the studios . This leaves £32K which is taxable but you can claim £11K capital gains allowance . So you probably have about £21K capital gain to pay tax at 18% or 28%.

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  • halfax
    replied
    it was my house original took me a couple of years to convert then i lived in one studio for about a year , moved out thenlived in another of the studio one for about a year

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  • Gordon999
    replied
    Are you saying you bought the house 10 years ago and occupied whole house for 5 years as your main residence?

    Then 5 years ago, you converted the house to 3 studios units and lived in one studio for last 5 years and let out the other 2 studio units ?

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  • halfax
    replied
    they have not been split and 2 have been rented,for 5 years

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  • jpkeates
    replied
    If the properties haven't been let, this is probably going to be subject to income tax not CGT.

    When the property was split, your residence became the property you moved into, and the two new properties were created.
    The work done on those units was development, not investment.

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  • JK0
    replied
    If you could sell one flat every year you'd get every year's cgt allowance. Is that a possibility?

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  • halfax
    replied
    sorry should be 110000

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  • halfax
    started a topic disposing of studio lets

    disposing of studio lets

    have a house which i cinverted into 3 studio flats all seperate council taxs i want to sell i have lived in one for the last year and the house was my main residence for 5 years
    i paid 30000 for the house and selling for 11000 what reliefs are open to me?

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