Capital Gains Tax on house sale

ceeforcat

http://www.accountingweb.co.uk/anyanswers/letting-relief-what-if-only-tenancy-just-property-sold

Clapton - the reason I asked is because I used to be exactly in agreement with your last post. However, the thread above will highlight just how grey the area is when the property has been let in the last three years. Quite simply, I now do not know what the answer is!

On another point, moggymalone, if you have only just started to rent out the property in the last six months, i.e. after April 2011, this does not need to be declared until next tax year as income for the current tax year. Your deadline would be 31 january 2013.

MOGGYMALONE

Thank you Clapton and Ceeforcat for your replies.
I have been letting the house out since May this year 2011, and have advised HMRC and they have sent me a letter to say i have a reference for Self Assessment and when they send me the forms that i have to complete the return within three months. I thought that meant this year? but maybe they will send the forms later. Havent heard anymore from them so that is probably why. I've tried ringing them but you just get messages all the time so i gave up and just wrote them a letter instead but its probably a standard letter. No mention of not having to do it until 2013 but thats good news to me
The main reason why I let the house out was because of the council taking over management of vacant properties in our area - i prefer having a certain degree of control over who lives in the house and have a great set up at the moment but in the long term I will be selling as it can be costly to maintain the house even though you have the rental as theres lots of other costs such as insurances, maintenance, repairs etc.
Thanks for all your help its been a real insight!
Best wishes, Moggy

ceeforcat

Just to clarify as there is some confusion - you have three months to submit a tax return if issued after 31st October following the tax year for which you will be returning the income. If you get one for 2010/11, this strict deadline will apply and you will have to declare all your income from every source for the tax year 2010/11 i.e. no property income. The tax return for 2011/12 tax year will be issued around 10th April 2012 and there are three deadlines :
31/10/12 if you are sending it in paper form. 31/12/12 if you wish to send it in online and wish tax to be collected through your tax code. Otherwise, the final deadline is 31/01/13

MOGGYMALONE

Thanks ceeforcat. I will maybe write to HMRC to have them verify when they need me to do the return as I'm not sure. Thank you for explaining all this its been very helpful and to CLAPTON also.
Will update you when I hear from them.
Kind Regards, Moggy

ceeforcat

O.K. - Just bear in mind that when it is issued it has to be completed - you don't really have a choice after that.

MOGGYMALONE

thanks ceeforcat for all your help. i will keep that in mind

MOGGYMALONE

I've checked my bank statements and I received a payment on the 15th of April 2011 for my first half month rental income - does that mean i need to complete a return for this year 2011/2012 or do i still wait to 2012/2013. I thought i hadnt got a rent payment until May when they moved in but they had taken the property for rent on or around the 15th hence the first half month payment and moved in in May.

Then i have been renting it monthly since May 2011 to date - i cannot get through on any phone numbers to HMRC to ask them about this and I'm just worried if i am missing a deadline!!

I still havent received a notice yet.

Confoooosed! Moggy

00ec25

tax year runs 6 April to 5 April
you started renting on 15 April 11 therefore your rental income is part of the 11/12 tax year and as #14 above the absolute last submission date for that is 31/1/13

MOGGYMALONE

oh thanks so much i was panicking there! I was worried in case i hadn't done it on time and as I havent done one yet I just want to be certain I'm doing it right ! As you can tell I don't know much about taxation thank you so much for replying so quickly its quite frustrating when you don't get to talk to the people at the tax office the phone just rings off the hook and they are so automated but i do understand its busy especially with the looming deadline. I'm just gonna write a letter and ask them when to expect the notice.
Thanks again