CGT advice please

grey_gym_sock

shining wrote: »

I have owned my flat for 13years. I have lived in it for 5years only and rented it out for the remaining 8years.

do you mean you lived in it for the first 5 years? the 5 years you lived there are exempt, and so are the last 3 years. but if you lived there during the last 3 years, you can't count them twice for the exemption.

assuming you weren't living there during the last 3 years, then you have 5 + 3 = 8 years exempt, out of 13.

It was purchased for 64.000 and I am hoping to sell it for 150.000
A gain of 86.000.

so, PPR exemption = 8/13 of £86,000 = £52,923

non-PPR gain = 5/13 of £86,000 = £33,077

lettings relief is the lower of:
i) PPR £52,923
ii) non-PPR £33,077
iii) £40,000 cap

which is £33,077, reducing the gain to 0.

so no CGT. at least on the assumption that you lived there in the first 5 years.