Capital Gains Tax on sale of property

dcg4173

I would be most grateful if someone could advise on my situation.

I have a flat that a bought about 17 years ago for £75,000. I lived in the property for 11 years then moved in with my parents and have rented it out for the last 6. I have now given my tenants notice and will be putting it up for sale on 4 September. The expected sale price is £240,000.

Please could someone advise if I will have any capital gains tax to pay with workings if possible. I really don't understand PPR, personal allowances etc.

Any advice would be much appreciated.

Also to make it a little more complicated, last year my parents transferred a house into mine and my sisters names. I have never lived in this house and it has never been rented.

Thank you.

xylophone

http://www.hmrc.gov.uk/cgt/property/basics.htm

Read through this.

tim123456789

xylophone wrote: »

http://www.hmrc.gov.uk/cgt/property/basics.htm

Read through this.

which seems to me to be only useful to someone who already knows the answer that they are looking for .

to the OP.

As long as, for the period that you lived in the property, it was your only (or main) home, then on the figures that you have given there will be no tax to pay.

you get the 11 years that you lived in it plus the final 3 years of ownership (because you have previously lived in it) "tax free" and the final 3/17th of the gain is less than the amount allowed as "letting relief" (which you are also entitled to because you previously lived in it).

Same won't apply to the other house because you have never lived in it.

Though you should actually do the calculation in full months, not years. So if you've rounded in your favour you might end up with a small amount of tax to pay.

dcg4173

Thanks Tim

As you said, the link only helps if you understand it!!

Your help is much appreciated.