avoiding c g t

DAVID_4

i am trying to get definitive advice re avoiding paying too much capital gains tax on a property i purchased almost 9 years ago, and which i have let ever since. the property was purchased for approx £86000 and if sold now would perhaps go for approx £230000. i currently reside in another property which i also own outright, and have been advised that if i moved into the let property as my main residence for a period of 6 months i would be able to sell it after 6 months and thus avoid cgt. is this true? thanks for any help/advice.

[Deleted User]

live in it for a while and sell as your main residence will cut down tax.

Always100FC

david you will not be able to avoid CGT entirely. may i advise you read eddie123's thread and other threads regarding CGT to give you a flavour of the rules around CGT

DAVID_4

thanks Yant1. would you know the optimum amount of time would be necessary to occupy the flat before selling it on? and can you or any other kind advisor show me the calculations of cgt due if i decide simply to sell without moving into the flat as a main residence.

silvercar

gain=230k-86k=144k less say 5k selling and buying expenses = 139k.

You get 35% relief as you have owned the property for 9 years, leaving 139k x 65%=90,350.

9,200 capital gains tax allowance leaves 81,150.

All taxed at your marginal rate. At 40% that would be £32,460, payable January 2009 if you sell in this tax year.