PLEASE READ BEFORE POSTING
Hello Forumites! In order to help keep the Forum a useful, safe and friendly place for our users, discussions around non-MoneySaving matters are not permitted per the Forum rules. While we understand that mentioning house prices may sometimes be relevant to a user's specific MoneySaving situation, we ask that you please avoid veering into broad, general debates about the market, the economy and politics, as these can unfortunately lead to abusive or hateful behaviour. Threads that are found to have derailed into wider discussions may be removed. Users who repeatedly disregard this may have their Forum account banned. Please also avoid posting personally identifiable information, including links to your own online property listing which may reveal your address. Thank you for your understanding.Capital Gains Tax Calculation
Options
padalton8
Posts: 1 Newbie
Dear all,
I am slightly confused as to whether I would pay capital gains tax on the sale of a property I own. I purchased the house in 2009 for £157000 and lived in it until 2013. Ever since, the property has been rented out and I now own another property which I live in and is my primary residence.
I have been told by the accountant that does my tax return I would be liable for some CGT on the sale of the property, especially as I haven't lived in the house since 2013. But I am now confused from reading old posts on here and on other websites, plus the government sites aren't very clear. I have had some advice regarding 'Lettings Relief' I would be able to claim if I sold the property. I have had some advice about moving back into the property for 6 months and making it my main residence again but this seems a little stressful, especially if I am not, in fact liable for CGT at all. If I sold the property now, (which I am considering) I think I would probably get £120,000 on a good day.
Any help or advice would be very much appreciated.
Regards
Paul
I am slightly confused as to whether I would pay capital gains tax on the sale of a property I own. I purchased the house in 2009 for £157000 and lived in it until 2013. Ever since, the property has been rented out and I now own another property which I live in and is my primary residence.
I have been told by the accountant that does my tax return I would be liable for some CGT on the sale of the property, especially as I haven't lived in the house since 2013. But I am now confused from reading old posts on here and on other websites, plus the government sites aren't very clear. I have had some advice regarding 'Lettings Relief' I would be able to claim if I sold the property. I have had some advice about moving back into the property for 6 months and making it my main residence again but this seems a little stressful, especially if I am not, in fact liable for CGT at all. If I sold the property now, (which I am considering) I think I would probably get £120,000 on a good day.
Any help or advice would be very much appreciated.
Regards
Paul
0
Comments
-
Who advised you to move back in for 6 months?
This thread has a sample calculation for working out your CGT liability. Plug you numbers in to find out if you will have to pay any CGT.
http://forums.moneysavingexpert.com/showpost.php?p=69071134&postcount=60 -
If it is worth less than you paid for it, then it will be a loss surely, therefore no capital gains to pay (since there is no gain)?0
-
i read the OP as they would have a 120k gross gain against their original 157k purchase price, which is high but not impossible between the 8 years 2009 - 2017If it is worth less than you paid for it, then it will be a loss surely, therefore no capital gains to pay (since there is no gain)?
OP
confirm what the numbers are and plug them into the example above ...0 -
...I have been told by the accountant that does my tax return I would be liable for some CGT on the sale of the property, especially as I haven't lived in the house since 2013..
You will be much better off taking your accoutant's advice, rather than that of random strangers from the interweb.0 -
well if the OP confirms the numbers it is a 2 minute job to illustrate the ball park liability seeing as the calculation is one I have done many times - on a non random basisYou will be much better off taking your accoutant's advice, rather than that of random strangers from the interweb.
0
This discussion has been closed.
Categories
- All Categories
- 343.2K Banking & Borrowing
- 250.1K Reduce Debt & Boost Income
- 449.7K Spending & Discounts
- 235.3K Work, Benefits & Business
- 608.1K Mortgages, Homes & Bills
- 173.1K Life & Family
- 247.9K Travel & Transport
- 1.5M Hobbies & Leisure
- 15.9K Discuss & Feedback
- 15.1K Coronavirus Support Boards