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Capital gains calculation
boo123_2
Posts: 1 Newbie
Is there any advantage regarding capital gains tax in living in a buy to let property that I own before selling? I am single living with my parents at present.The potential capital gain is around 60k, the buy to let mortgage has been paid of with my pension commutation. I have owned the property around 10 years.
Thanks
Thanks
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Comments
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Massive advantage.
60k gain that was never your home.
CGT allowance of 10.1k. Gain is 49.9k. tax at 18% CGT rate = £8,982.
60k gain that you live in for say one year.
Move in now and live in it for a year out of 11 years ownership.
PPR relief for last 3 yrs = 3/11 x 60 = 16,363
letting relief minimum of (40k, (PPR)16,363, time it was let (10/11x 60)= 54,545)=16,363
CGT allowance=10.1k
gain liable for tax= 60-16,363-16,363-10,100=17,174
17,174 x 18%=£3,091.I'm a Forum Ambassador on the housing, mortgages & student money saving boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Forum Ambassadors are not moderators and don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com (it's not part of my role to deal with this). Any views are mine and not the official line of MoneySavingExpert.com.0
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