capital gains tax

noelbreen

i have bought and lived at my present address for 20 years but soon i am due to go and live with my fiancee and i am lookin to rent out my place for around 5 years and then sell it.
how likely is it upon selling that i will incur capital gains tax bill?

freesave

This article should help you.

http://www.taxationweb.co.uk/articles/article.php?id=108

Ian_W

Chances of paying CGTare slim to nil. The time you've lived in it plus the last 3 yrs of ownership qualify for residential relief so potentially 2/25ths of the gain from the purchase price to selling price may be liable BUT when you qualify for residential relief you can also claim letting relief of the same amount up to a max of £40K. You will then also be able to claim taper relief [and indexation] which increases the longer you own the property + your CGT personal allowance which is currently £8,800pa.

There is an HMRC helpsheet dealing with residential and letting relief at:
https://www.hmrc.gov.uk/pdfs/2003_04/capital_gains/ir283.pdf

It's impossible to say you wont have something to pay [as it will depend on the figures when you sell] but it's highly unlikely you will and if you do it will be a very small % of your sale price.

HTH.