Cgt issue

sabelu

I moved six months ago and because of property prices decided to rent out my old property until the Market recovered am now considering the situation and doesn't look likely that it's still any better that being the case when will I be liable for cgt if I sell at a later date.
Also what can I claim against this tax, interest claimed on additional mortgage payments, anything else?

00ec25

the mortgage cost is allowable agaiunst your income tax due on the rent, it has nothing to do with CGT

once you move out of a property in which you previously lived you then have an additional 36 months in which you can sell it and not pay any CGT at all

after 36 months it becomes liable for CGT which is calculated on the total gain from the date you bought it to when you sell it (its value at the date you moved out is irrelevant)
as you are also renting it out you are entitled to lettings relief, this gives up to £40K deductiuon from the amount of gain you make on the property

there are numerous postings on this, do a search on lettings relief, a starter is here

CLAPTON

its unlikely that you will pay any CGT for many years as you are exempt for
-the period that it was your primary residence
-the last three years before selling
-letting relief up to 40k
-your own CGT allowance ..currently 10,100


you need to research the income tax issue but
-you can offset the INTEREST on the mortgage against rental income
-if furnished you can deduct 10% of the rent towards ware and tear
-costs of elect/gas safetly checks
-repairs in general
-advertising and letting costs