Capital gains tax on this sale of property?

AmyC_3

Hello,

Looking for advice as I am in somewhat of a panic!
Do I pay capital gains tax in this situation:
I bought a flat just over 2 years ago and lived in it as my only residence for 1 year. I then moved into rented accomodation with my partner and rented out my flat. The mortgage was still a residential mortgage but I was given 'consent to let'. I have rented out this flat for just under 1 year.
I am now selling this flat at a profit of £33,500 and buying another property (this time with a buy to let mortgage).
I have tried to find out whether I am liable, but it is a minefield!
Any help much appreciated.

Thank you.

alan99_2

I believe the last 3 years of ownership may be exempt if it was your only residence at one time. I am no expert.
See here
http://www.capitalgainstax.org.uk/article.html


" Using the Main Residence Exemption

The capital gain on your own main private residence (i.e. your home), is exempt from Capital Gains Tax. Where a property has been your main residence for a part of your period of ownership then a partial exemption is available.

Furthermore, whenever this partial exemption applies, it not only covers the period that the property was your main residence, but also will always cover the last three years of your ownership of the property.

And there's more… "

Don't panic, do a bit more research!

Alan

silvercar

your fine. A property you lived in as your PPR is also exempt for the last 3 years of ownership.

selling this and buying a new one, could give you a CGT liability when you sell the new one, may be worth hanging on to this one! Having lived in the home you would also get letting relief - worth upto 40k.