CGT on house

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    CGT on house

    Hello

    I wondered if anyone here would be able to see if I'd need to pay CGT on a house that I'm about to sell?

    I purchased the house in 2000 for £37,000

    Got married, had kids & moved out in 2011 and rented the house out, paid tax on rental income via self assessment each year.

    It has been valued at around £110,000

    If I get the asking price then I'll have made a gain of £73,000, it's the allowances and letting relief I'm struggling to get my head around.

    The house is in my name only. I've been in full time employment since 1996 (if that makes a difference).

    Many thanks for the help

    #2
    Due to PPR and Letting relief you have a very small gain based on the rough dates/figures you have provided. However you will not have a CGT liability:
    Purchase 37,000 14/06/2000
    Disposal 110,000 14/06/2016
    Total Gain 73,000
    PRR 56,651 149 192
    Capital Gain 16,349
    Lett Relief 15,978 Qual Days 1279
    Net Gain 371
    CG Allow 11,100
    CGT 0 0


    Regards Peter

    Comment


      #3
      Pete...many thanks for your help, much obliged.
      It's making sense now that it's broken down into its components.

      Comment


        #4
        CGT on house

        Hello

        I posted on here a while ago asking for some help with working out my CGT liability on a house I was thinking of selling. TaxationPete very kindly worked it out for me. I have now sold the house and was wondering Pete if you'd be so kind as to show me a breakdown with the accurate figures below? I'm not sure if any of the rules have changed since I last asked.

        I purchased a terraced house on June 16th 2000 for £37,000

        In Dec 2010 purchased a larger home requiring some work (this became my primary home in May 2011 when we moved in after works were complete).

        I rented the old terrace house out from 3rd Jun 2011 until 26th Feb 2016 , paid tax on rental income via self assessment each year.

        I sold the terrace house on 01 Jul 2016 for £107,000 (£105,218 after estate agent and solicitors fees).

        The terrace house was in my name only. I've been in full time employment since 1996 (if that makes a difference).

        Many thanks in advance for your time, much appreciated.

        Comment


          #5
          Two related threads have been merged.
          I also post as Mars_Mug when not moderating

          Comment


            #6
            Purchase 37,000 16/06/2000
            Disposal 105,218 01/07/2016
            Total Gain 68,218
            PRR 52,940 149 192 (this is the period you have lived in the property plus 18 mnths and your total period of ownership)
            Capital Gain 15,278
            Lett Relief 13,752 Qual Days 1181
            Net Gain 1,526
            CG Allow 11,100
            CGT 0 0
            CGT 0 0

            CGT Bill 0

            So no CGT liability that is not covered by your CG Allowance

            Read HS 283 on the HMRC web site. Regards Peter

            Comment


              #7
              Fantastic Pete...thanks again for this.

              Comment

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