Help! Capital Gains Tax And My Property

Debt_Free_Guy

Please can you help!!!!!!!

I own a property worth around £115,000 (It's in my name exclusively)

In May 2010 I moved out of the property following the breakdown of my marriage and my wife remained there. She has now moved out as of December 2012.

I have put the house up for sale.

I have got conflicting messages one person telling me that I'm eligible to pay capital gains tax if I sell the property because I haven't been living there for 6 months but another saying it's after 3 years.

Can anyone help point me in the right direction. Also does anyone know how much I will need to pay? I understand that this will be paid on the profit of the sale and currently my mortgage is for £57,000.

Any help you can provide would be hugely appreciated

getmore4less

CGT is based on purchase price.

the last three years of ownership get except if you have lifed in the property at any time as you main residence.

do a internet search for "HMRC CGT" that will give you links to the basic HMRC guides and other usefull information.

holly_hobby

The last 36 mths of ownership whether you reside there or not, are excluded from CGT liability - as is the period when the property was your primary residence.

So you have until May 2013 until you have to start worrying.

If you haven't sold by then, come back and I'll work out any CGT liability for you (which will be mitigated further if you rent at any point before sale).

So fret not and hope this helps

Holly x

nomunnofun

As it stands there will be no Capital Gains if the property is sold before May 2013 as it was your main residence up to three years before this. Even then you have your annual exemption. Mortgage is irrelevant. How much did the property cost?