Your browser isn't supported
It looks like you're using an old web browser. To get the most out of the site and to ensure guides display correctly, we suggest upgrading your browser now. Download the latest:

Welcome to the MSE Forums

We're home to a fantastic community of MoneySavers but anyone can post. Please exercise caution & report spam, illegal, offensive or libellous posts/messages: click "report" or email forumteam@.

Search
  • FIRST POST
    • Lamy
    • By Lamy 12th Mar 17, 6:42 PM
    • 31Posts
    • 17Thanks
    Lamy
    Capital Gains Tax
    • #1
    • 12th Mar 17, 6:42 PM
    Capital Gains Tax 12th Mar 17 at 6:42 PM
    Would it be possible to help me work out some capital gains tax information?

    I bought a property in September 2012, I then:

    Lived in September 2012 - August 2014
    Let out August 2014-June 2016
    Lived in June 2016-February 2017

    The gain I made was 100,000 and I didn't own any other property in the meantime. The worked capital gains examples all have a straightforward situation of living in then letting out but I've had different periods of living in / letting it.

    Essentially I owned it for 4 years and 5 months (53 months) and let it for a total of 23 months. Also I think you get relief for the 18 months prior to selling is which is August 2015.

    So I need to pay Capital Gains on 12 months of letting? So 12*100000/53.

    Are there any other reliefs I can apply to it?

    Thanks for any help
Page 1
    • booksurr
    • By booksurr 12th Mar 17, 11:33 PM
    • 3,614 Posts
    • 3,996 Thanks
    booksurr
    • #2
    • 12th Mar 17, 11:33 PM
    • #2
    • 12th Mar 17, 11:33 PM
    please read this:

    http://forums.moneysavingexpert.com/showpost.php?p=69071134&postcount=6

    then re-do your calculation and post up your workings so someone can confirm you have then got it correct.
    You are currently slightly off in that you have missed out relief and have made the usual mistake of not counting both the first and last month of ownership, purchased in Sept 12 and sold in Feb 17 is 54 months, not 53.
    Last edited by booksurr; 13-03-2017 at 12:16 PM.
    • silvercar
    • By silvercar 13th Mar 17, 8:47 AM
    • 36,062 Posts
    • 152,331 Thanks
    silvercar
    • #3
    • 13th Mar 17, 8:47 AM
    • #3
    • 13th Mar 17, 8:47 AM
    Would it be possible to help me work out some capital gains tax information?

    I bought a property in September 2012, I then:

    Lived in September 2012 - August 2014
    Let out August 2014-June 2016
    Lived in June 2016-February 2017

    The gain I made was 100,000 and I didn't own any other property in the meantime. The worked capital gains examples all have a straightforward situation of living in then letting out but I've had different periods of living in / letting it.

    Essentially I owned it for 4 years and 5 months (53 months) and let it for a total of 23 months. Also I think you get relief for the 18 months prior to selling is which is August 2015.

    So I need to pay Capital Gains on 12 months of letting? So 12*100000/53.

    Are there any other reliefs I can apply to it?

    Thanks for any help
    Originally posted by Lamy
    You are on the right lines. You also have letting relief and a CGT allowance of £11,000, if not used elsewhere.
    I'm a Board Guide on the Debate House Prices & the Economy, House Buying, Renting & Selling, Mortgages and Endowments, In My Home incl DIY, Overseas Holidays & Student boards.
    I volunteer to help get your forum questions answered and keep the forum running smoothly.
    Board guides are not moderators and don't read every post. If you spot an abusive or illegal post then please report it to forumteam@moneysavingexpert.com. Any views are mine and not the official line of moneysavingexpert.com.
    • MissTasmanian
    • By MissTasmanian 13th Mar 17, 9:25 AM
    • 677 Posts
    • 308 Thanks
    MissTasmanian
    • #4
    • 13th Mar 17, 9:25 AM
    • #4
    • 13th Mar 17, 9:25 AM
    please read this:

    http://forums.moneysavingexpert.com/showpost.php?p=69071134&postcount=6

    then re-do your calculation and post up your workings so someone can confirm you have then got it correct.
    You are currently wrong and have made the usual mistake of not counting both the first and last month of ownership, purchased in Sept 12 and sold in Feb 17 is 54 months, not 53.
    Originally posted by booksurr
    Thanks for sharing the link it made for interesting reading; although I always thought that if you only owned the one property you were entitled to the full total private residence relief?
    • booksurr
    • By booksurr 13th Mar 17, 12:11 PM
    • 3,614 Posts
    • 3,996 Thanks
    booksurr
    • #5
    • 13th Mar 17, 12:11 PM
    • #5
    • 13th Mar 17, 12:11 PM
    Thanks for sharing the link it made for interesting reading; although I always thought that if you only owned the one property you were entitled to the full total private residence relief?
    Originally posted by MissTasmanian
    you think wrong

    CGT is a tax on a gain, ownership is important, but is not the deciding factor. Exemption from the tax is not based on how many you own, it is based on what you do with what you own.

    there are several scenarios where you may only own one property but its use is not as your main home and therefore it is not eligible for "full total private residence relief".

    The obvious one being where you own a property, lose your job, relocate to another area to get a new job, rent in the new area and retain the ownership of the one property as an "investment" or as a means of being able to return to that area at a future date and in the meantime you let the owned property.

    The rental property in which you actually live is then your main home and the owned property is then liable for CGT as it is not your main home since it is occupied by tenants. A variation of that scenario is where the owned property is left vacant and is therefore both a) the only property owned and b) still capable of being used by its owner as their main residence, but in reality not so used because they live (and rent) elsewhere. In this latter variation in order to retain PPR they would need to make a formal election (ie the infamous "flipping" done by MPs) to HMRC to nominate the owned property as their main home . The law being that where someone rents a property as a tenant then that rental counts as their main home even though they do not own it.

    I guess many people misread the oft quoted phrase "only/main home". If you look at the wording it says only home and/or main home . In both case it uses the word home, it does not say only property owned. the use of the property must be as a home in order for it to be "only" or "main". that is what determines whether you are or are not entitled to "full total private residence relief".
    Last edited by booksurr; 13-03-2017 at 12:24 PM.
Welcome to our new Forum!

Our aim is to save you money quickly and easily. We hope you like it!

Forum Team Contact us

Live Stats

2,971Posts Today

7,529Users online

Martin's Twitter
  • Interesting, most people say they would champion a policy from a party they usually oppose. Yet is anyone brave eno? https://t.co/MWYGHunAqu

  • RT @MSE_Deals: The MSE deals team are in the office nice and early to bring you full analysis of all the #BlackFriday deals throughout the?

  • RT @MSE_Deals: #BlackFriday UPDATE... We've spotted some of Currys' prices are cheaper online than in its stores, eg, Sonos Play 1 £149 onl?

  • Follow Martin