Capial gains tax

lancashire

Hello,i wonder if anyone can give me some advice,i bought a house in 1989,for £30,000 , i have just sold it for £105,000,i did not live in it for the last 4 years as i bought a house nearer to work,i had a cousin living in the property rent free,i have spent £15000 on double glazing,oil heating installed,converted a coal bunker into a utility room,a new kitchen and fees for solicitor and estate agent,can anyone please tell me what amount of capital gains i have to pay,and do i have to pay it this year.thankyou.:o

CLAPTON

from the somewhat limited facts supplied, you have no tax to pay.

if you wish to give more details of date and month of buying, living there and selling then we could just check more accurately

Elaine_Wilson

Was it your main residence from 1989 to 2008? If so, then I doubt you will have a liability.

Assuming that all the extra costs constitute "improvements" then you will have made a gain of £60,000. The total period of ownership is 23 years. Private residence relief will be available for the period you occupied it (1989 to 2008 - 19 years) plus the last three years. So, 22 / 23rds of the gain is exempt.

You are left with a gain of about £2,600 which will be covered by your annual exemption, assuming you have no other gains this year.

This is just a rough calculation as it should all be worked in months but it all hangs on what happened between 1989 and 2008.

By the way, just for information a sale now (in the 2012/13 tax year would mean any CGT would be payable in January 2014.

lancashire

Thanks for the quick replies,i bought the house in august 1989 for £30,000, i lived there continuosly up to january 2009, before i purchased another house nearer to my workplace,i sold the property this month for £105,000, sorry for being sketchy with the original details. thankyou:o

lancashire

CLAPTON wrote: »

from the somewhat limited facts supplied, you have no tax to pay.

if you wish to give more details of date and month of buying, living there and selling then we could just check more accurately

Thankyou,i bought thr property in august 1989,and lived there permantly till january 2009, i sold the house this month for £105,000, having bought it for £30,000,thanks once again for your input.

CLAPTON

elaine's post above covers it pretty well
of your 23 years of ownership you have principal residential relief for 19.5 years plus the last three years i.e. 22.5 so you only have to account for half a year

with a cgt allowance of 10,600 you have no tax to pay