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    • padalton8
    • By padalton8 13th Mar 17, 1:46 PM
    • 1Posts
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    padalton8
    Capital Gains Tax Calculation
    • #1
    • 13th Mar 17, 1:46 PM
    Capital Gains Tax Calculation 13th Mar 17 at 1:46 PM
    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
Page 1
    • Pixie5740
    • By Pixie5740 13th Mar 17, 1:57 PM
    • 9,644 Posts
    • 13,100 Thanks
    Pixie5740
    • #2
    • 13th Mar 17, 1:57 PM
    • #2
    • 13th Mar 17, 1:57 PM
    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=6
    Annual income twenty pounds, annual expenditure nineteen pounds nineteen and six, result happiness. Annual income twenty pounds, annual expenditure twenty pounds nought and six, result misery.
    • Mrs36
    • By Mrs36 13th Mar 17, 2:02 PM
    • 92 Posts
    • 149 Thanks
    Mrs36
    • #3
    • 13th Mar 17, 2:02 PM
    • #3
    • 13th Mar 17, 2:02 PM
    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)?
    • booksurr
    • By booksurr 13th Mar 17, 5:18 PM
    • 3,615 Posts
    • 3,986 Thanks
    booksurr
    • #4
    • 13th Mar 17, 5:18 PM
    • #4
    • 13th Mar 17, 5:18 PM
    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)?
    Originally posted by Mrs36
    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 - 2017

    OP
    confirm what the numbers are and plug them into the example above ...
    • antrobus
    • By antrobus 13th Mar 17, 5:35 PM
    • 14,308 Posts
    • 20,127 Thanks
    antrobus
    • #5
    • 13th Mar 17, 5:35 PM
    • #5
    • 13th Mar 17, 5:35 PM
    ...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..
    Originally posted by padalton8
    You will be much better off taking your accoutant's advice, rather than that of random strangers from the interweb.
    • booksurr
    • By booksurr 13th Mar 17, 7:00 PM
    • 3,615 Posts
    • 3,986 Thanks
    booksurr
    • #6
    • 13th Mar 17, 7:00 PM
    • #6
    • 13th Mar 17, 7:00 PM
    You will be much better off taking your accoutant's advice, rather than that of random strangers from the interweb.
    Originally posted by antrobus
    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 basis
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