Help pls with CGT calculation

hilali65

Hi All,
I wonder if anyone could assist us please.
I am trying to calculate how much CGT myself and my wife need to pay if we sell a rented house that we own.
We purchased this house in 1996 for £82K and lived in it until 2001. It was valued at the time we left it around £200K. We have a mortgage on the house now of £160k which we took out while we were living there.
We rented the house out since 2001 and paid tax as normal against rental income albeit minimal.
Now we are in a position to sell. We are spending around £8k to bring it up to a descent shape and the estate agent estimated value is around £250K.
I read HMRC website but it's not very clear where stand as we lived in the house for 5 years and then rented out.
We have another house where we are living in since we left the old one.
Any advice or rough calculation would be much appreciated.
Regards

pete80

As you haven't specified the actual months of purchase, moving out etc and haven't sold yet I can only give you a ballpark figure to work with.

Assume property owned for 13 years (156 months), Lived in for 5 years (60 months), add on the 36 months PPR relief so total is 96 months allowable.

Profit after sale is assumed at £168,000 divided by 156 times 60 = £64615.38, from this you can deduct Lettings Relief of £40,000. You would also have a CGT allowance each of £10,100 each (if both on mortgage) and don't forget you can also deduct Purchase and Sale expenses like legal and estate agent costs as well as any improvements (not repairs,these are allowable against rental income)

Obviously the figures here can change when taking the actual dates into consideration. I would also get an accountant familiar with CGT on properties to do a calculation sheet for you to attach to the relevant tax return. You should get this done for less than £150 if straightforward.

hilali65

Many thanks ...that does help me a lot.
I purchased the house April 1996 and moved out December 2001.
Thank you once again

chappers

roughly in whole years, needs to be worked out in months

taxable gain £250,000-£82,000=£168,000
residential relief 8/13 * £168,000=£103,385
letting relief £40,000
personal relief (assuming joint owned £20200

Total relief £163,585

Amount liable for CGT £4415 @ 18%=£794.70