CGT assistance please

00ec25

http://www.hmrc.gov.uk/manuals/cgmanual/CG64555.htm

a)SFA (Service Families Accommodation) counts as job related accommodation (JRA)

b) you occupy SFA under a licence not a tenancy therefore you did not have to nominate your "only" home as you had no legal interest in the SFA so in effect you only ever had one home

c) the above means you are entitled to PRR for the entire period, provided the intention to return to the house still exists - read the example on the above HMRC webpage paying particular attention to the final para regarding making sure there is no overlap between the date of sale, the date the rent ends and you leaving SFA

tired_dad

I am not an accountant or giving professional advice.

A 30k gain in total. You have 10k each in tax free capital gains allowance. So the taxable amount is about 10kish. Presumably the gain is even lower for the period that it was joint. Presumably if you have done upgrades to improve the value, that wold make the capital gain less.

I can't see you are going to have a large gain. Go and speak to a friendly accountant

00ec25

tired_dad wrote: »

I am not an accountant or giving professional advice.

even if they are not totally exempt under JRA, they would nonetheless be able to claim lettings relief which, considering they are married and both are owners, would mean they have a combined total £101,200 of relief, There is no way they will have to pay CGT on such a small gain as 30K. I appreciate your good intent but tax is quite complex and requires a lot of knowledge

there is only one real expert on these boards and that's an ex HMRC CGT tax inspector by the handle of "Jimmo". Hopefully he will post on here in due course as his answer will be definitive

nomunnofun

Not sure that he is the 'only' expert although I could not name one more knowledgeable. There are others with excellent knowledge e.g. Clapton, Pennywise etc. and you also do yourself a disservice by your exclusion.

jimmo

nomunnofun wrote: »

There are others with excellent knowledge e.g. Clapton, Pennywise etc. and you also do yourself a disservice by your exclusion.

I would agree with that and don’t really see the point of anyone joining a thread just to confirm what someone else has already said.

However, as I have been nominated, for the sake of completeness, I would probably add to OOec25’s explanation the following link which confirms that HMRC accept that SFA is Job Related Accommodation.

http://www.hmrc.gov.uk/manuals/eimanual/EIM11351.htm