Will I pay Capitall Gains Tax

phoenix2010

I own a property which I rent out

I used to live in the property but had to move to go to Uni , tried to sell it but couldnt so ended up getting tenants in and I rent another property

So although I dont live in it , its not a second home as such

My tenants want to buy it from me but Im concerned Ill have to pay capital gains tax , can anyone advise please

The also cant raise the deposit and have asked me to consider a landlord discount , so they dont need a deposit , another subject I know !

thanks in advance

Sally

eddtheduck

Have a look here re Capital Gains Tax: http://www.hmrc.gov.uk/helpsheets/hs283.pdf

tim123456789

Will you? We don't know, will you?

Should you? Can't say, need to know how long you lived in it, how long you have rented it, what the purchase price is and what the potential gain might be

00ec25

it is no longer your main home so it is liable for CGT. CGt applies to properties you do not live in as your primary home, not whether it is a second home. Obviously with it let then it is not your home

that said whether you pay any CGT depends on the numbers:
- how much is the gain between your original purchase price and your expected sales price
- when did you buy it and when did you move out

the fact it was once your main home means you will get letting relief, so it is unlikely you will actually end up paying CGT but depending on the numbers you are almost certainly going to have to notify HMRC of your sale

phoenix2010

Thanks , I have researched a little but needed clarification on the wording

If I sell it for the same price I bought it , then I dont pay any capital gains tax , is that correct ?

Thankyou

Cornucopia

Yes. Zero gain = zero CGT

somethingcorporate

The clue is in the title, it is capital GAINS tax.

phoenix2010

Thankyou

phoenix2010

Ive come here for advice as I clearly know nothing about it , isnt that what the forum is for ?

if you want to be sarcastic and patronising then go and be a troll on facebook or huffpost

Thanks to the people who gave helpful responses , what a shame about the rest

If someone were to know nothing about my area of knowledge I would not judge or patronise , Id simply advise

Mallotum_X

You can apportion the gain as it used to be your main residence

You may also be entitled to "letting relief"

http://www.hmrc.gov.uk/helpsheets/hs283.pdf

Have a chat with an accountant or even give the Revenue a call and go through it.

TrickyDicky101

Vendor-gifted deposits are no longer allowed by any mainstream lenders (unless in some circumstances where vendor and buyer are related) so your tenants won't be able to use that as their source of deposit - they will have to save I'm afraid.