CGT on 2nd home sale

CLAPTON

It seems extraordinary that the HMRC don't made such an elementary point unambiguously clear

mind you osbourne was a little economical with the actuality in the budget speech too

JamesU

CLAPTON wrote: »

It seems extraordinary that the HMRC don't made such an elementary point unambiguously clear
mind you osbourne was a little economical with the actuality in the budget speech too

For sure, too many decisions and policies are being rushed out, possibly with insufficient forward analysis of the consequences. Time will tell.

On the second point, this would take up a whole thread in its own right.

JamesU

Shand73

Sorry guys but I can't seem to find out how to start a new thread on this site so am 'piggybacking' on this one!

Can anyone advise on whether I would be liable for CGT on the sale of my 2nd home? Have owned the property for 13 years and it was my main residence for 9 of those, being rented out for the last 4 years. If I made a theoretical profit of £100,000k would I only have to pay CGT on 4 years worth of profit (i.e. approx. £31K) and, if so, does that get averaged out over the 4 years??

Any advice would be appreciated

00ec25

Shand73 wrote: »

Sorry guys but I can't seem to find out how to start a new thread on this site so am 'piggybacking' on this one!

use the button at the top left marked "new thread"

Shand73 wrote: »

Can anyone advise on whether I would be liable for CGT on the sale of my 2nd home? Have owned the property for 13 years and it was my main residence for 9 of those, being rented out for the last 4 years. If I made a theoretical profit of £100,000k would I only have to pay CGT on 4 years worth of profit (i.e. approx. £31K) and, if so, does that get averaged out over the 4 years??

go read this , it is your tax return so you need to understand the figures you are declaring. You must work in months not years - the last 36 months (ie 3 of the 4 years you rented it are covered by the 36 month rule)

post up your calculation and one of us will check it

Shand73

Thanks for that; had a look at your calculation and think I wouldn't be liable for any CGT based on the length of time the property was my Primary residence and the 36 month rule, which is good to know. Thanks again

dave2

yeah at a glance I would expect no tax to be due due to principle private residence and the letting relief, unlikely even to eat into the capital gains annual allowance