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Penelope

Capital Gains tax of property sold.

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    Can anyone tell me if there will be Capital Gains tax to pay on the sale of my property.

     

    The property was my home from 2009 until 2015 when I moved in with my now fiance, and has been rented up via an agent until now There is approx. £120k equity.

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    I think in theory if it were a second property then the price rise part from when you moved out would be liable. Personally if you haven't bought with your girlfriend I wonder if it will be exempt

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    Alex, no I haven't bought with her, although I will be buying into the property she has once mine has completed.

     

    I think in theory if it were a second property then the price rise part from when you moved out would be liable. Personally if you haven't bought with your girlfriend I wonder if it will be exempt

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    It is.

     

    Thank you.

     

    If that's the only property you own then you won't have to pay.
    I'm not shore how long you have to have the property for to be exempt though.

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    Apologies for jumping on your thread. I bought a second house 6 years ago and it has probably gone up about 30-40k in value since then. If i was to sell this year, do i have to pay capital gains tax? I was told by a mate a work, a property can gain a certain amount each year and you dont have to pay CGT

     

    Thanks in advance

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    I recently sold a 2nd property and had to pay tax on it. I had never lived there however.

     

    My take on it is if you only have the one property you'll probably be ok, but I would take proper advice on it. If you own two properties in your name I'd expect you'd be liable for CGT unless the property you were selling was your main residence.

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    My understanding is that CGT is payable on any capital gain, but there are exemptions and allowances; one exemption being if the property is your principle private residence, and by that you have to have 1 house and you have to be living / in residence there.

     

    https://www.gov.uk/tax-sell-home/private-residence-relief

     

    Most people assume that you get a freebie for 1 house, and that's sort of it, but I think you have to be living there....

     

    Don't ask me though, the sign above my door does not say "accountant".

    .

    Edited by Mungler

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    I had a similar situation. I was told that if you had rented your home out for 2 years or more you had to pay capital gains on it. Best to ask your accountant though things change. The Tax man will show no mercy for ignorance.

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    If this is the case maybe don't rent it for a period, get your post sent there and it's your home again, weigh it up against lost rent, and what you would pay cgt and see which is in your favour. Ask at work if you are in the same line as when we met must be a thing your employers try to get around.

     

    ATB Konnie

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    If that's the only property you own then you won't have to pay.

    I'm not shore how long you have to have the property for to be exempt though.

    This is not so,

    The residence became a business in 2015, therefore not primary residence, I doubt however taking into consideration the CGT allowances there will be any to pay unless it made a massive gain since then.

    what you do pay and what you should pay may be two different things.

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    My understanding is that CGT is payable on any capital gain, but there are exemptions and allowances; one exemption being if the property is your principle private residence

    As above, you will be able to claim PPR relief for the time period that the property was your actual residence, and also the last 18 months of ownership, regardless of how the property was used. Work out how many months you have owned the property in total, then work out how long it was your residence and add on 18 months. These two figures will give you the fraction of the gain which is covered by PPR.

     

    So if you had owned the property for 96 months, and lived in it for 72 months plus the last 18 months, the fraction would be 90/96. This would leave 6/96 of the gain chargeable to CGT

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    Rented 17 months in total. Tenants vacate 11th March.

     

    As above, you will be able to claim PPR relief for the time period that the property was your actual residence, and also the last 18 months of ownership, regardless of how the property was used. Work out how many months you have owned the property in total, then work out how long it was your residence and add on 18 months. These two figures will give you the fraction of the gain which is covered by PPR.

    So if you had owned the property for 96 months, and lived in it for 72 months plus the last 18 months, the fraction would be 90/96. This would leave 6/96 of the gain chargeable to CGT

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    Rented 17 months in total. Tenants vacate 11th March.

     

     

    It will depend on how quickly you can sell it, it's the last 18 months of ownership that qualifies for PPR regardless of use. Assuming you can sell it fairly quickly it sounds like you will have little or none of the gain chargeable to CGT.

     

    If there is a small taxable gain, it will offset against your annual exempt amount (£11,100 for 2016/17) assuming that you have no other capital gains in the year.

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    Sold subject to contract. Contract and transfer doc have gone off from my solicitor to the buyers.

     

     

    It will depend on how quickly you can sell it, it's the last 18 months of ownership that qualifies for PPR regardless of use. Assuming you can sell it fairly quickly it sounds like you will have little or none of the gain chargeable to CGT.

     

    If there is a small taxable gain, it will offset against your annual exempt amount (£11,100 for 2016/17) assuming that you have no other capital gains in the year.

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