CGT on home let

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    CGT on home let

    We lived in the property for 2 1/2 years and have then let it for 18 months while we've relocated. Now selling. How is CGT worked out? Thanks in advance.

    You will have no CGT due to PPR and may be a little Letting Relief. Read HA 283 on the HMRC web site.
    Please provide dates of all events at least MM/YYYY and acquisition costs and sales and legal fees and I'll run the numbers for you. Regards Peter


      That's incredibly helpful and kind of you, thank you Peter. I'll check data and post later on. Mark


        Property bought July 2011; actually moved in October 2011. Purchase price £585K. Legal fees and stamp duty approx £30K (tbc exactly).

        Lived there till September 2014. We relocated out of the area, renting in new place. Property let out to tenants, tax paid on income.

        Tenants planning to vacate mid June 2016. Sale price £985K; completion hopefully just after tenants vacate. Legal and agent fees of sale £12K.

        I'd be v grateful if, as Maths teachers say, you show your working out




          Btw Pete,
          Just to advise you, your message inbox is full. Tried to send as private message first.


            There were only 4 messages in my inbox. Strange.

            Here are the results :

            Purchase 585,000 14/07/2011
            Disposal 985,000 14/06/2016
            Total Gain 358,000
            PRR 339,797 56 59 Period of residence and Period of ownership This apportions the residential relief
            Capital Gain 18,203 Resulting gain
            Lett Relief 18,154 Qual Days 91. There is no LR for the last 18 months of ownership but some LR was allowed.
            Net Gain 49
            CG Allow 22,200 Two CGA £11,100 each not needed

            CGT Bill 0

            The small Net Gain is caused by mid month dating and can be ignored.

            Although there is no capital gain you will still need to report the sale to HMRC as the disposal was for more than 4 times the CGA.

            Regards Peter


              Thank you v much Pete,


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