CGT on house

Striker10

Hi everyone,

Hopefully a quick question.

I lived/owned a house with partner for a year. We then split up, I continued to pay existing mortgage until after 7 months I managed to secure a remortgage on my own for a buy to let basis (and let it out). Would I get the 36 month relief when sold?


Thanks

Mary_Hartnell

Where are you living now?

Striker10

Hi,

I have just bought a house. Funded with the sale of my old house (BTL).

The BTL was for 3 1/2 years

In between I was staying with friends and family.

These are the only 2 homes I have owned.

Striker10

I am guessing that my question is a little more complex than I appreciate.:o

So should I seek professional advice?

Any help would be great

Toni_Tax

Hi Striker,

The buy to let has never been your private residence so when/if sold you will get no relief at all and capital gains tax will be payable on the profit (you probably know that bit!).

The other property than therefore be your private residence throughout ownership and no capital gains tax is payable. You can make a back dated election to confirm to the Revenue you want that property to be treated as your Principal Private Residence but I wouldn't worry to much about it.

So, to answer your question, the 36month 'any reason' rule does not apply.

Hope that helps.

Toni

Striker10

Hi Toni,

Sorry, I don't understand.

The BTL was my main private residence for around 20 months i.e I lived ther for a year with Girlfriend, we then split up and I continued with the mortgage unitl I managed to buy her out and re mortgage on a btl basis 8months later.

I haven't held 2 properties at he same time so am clear on my current house. I think.

Toni_Tax

Oh right I see. Put another way then, you are allowed one residence at any one time which can be treated as your 'Principal Private Residence' and therefore you don't have to pay tax on the profit of sale. So you are in the clear, not a problem at all.

BTW, you may want to consider moving into the BTL at somepoint (even for a very short while) as then you can claim Principal Private Residence relief on the gain when you sell it as well as a very generous £40K letting relief.

Sorry if I confused you before

Striker10

Jimmo,

That is spot on and was what I was hoping the answer would be!:D

I was concerned my time as joint owner wouldn't make me eligible for the 36 months relief!

Many Thanks