capital gains tax

frankie1star

I had a house, I owned and moved out of to live somewhere else. Couldnt sell it, so rented it for about 3 years. Managed to sell it recently for 20k more than I bought it. In the time I lived there I spent about 10k adding fitted wardrobes and the kitchen and also 3k on purchasing a share of the freehold (10k) in total, I know I am allowed 9,200 against my capital gain, but will my expenditure negate the gain?

anselld

frankie1star wrote: »

I had a house, I owned and moved out of to live somewhere else. Couldnt sell it, so rented it for about 3 years. Managed to sell it recently for 20k more than I bought it. In the time I lived there I spent about 10k adding fitted wardrobes and the kitchen and also 3k on purchasing a share of the freehold (10k) in total, I know I am allowed 9,200 against my capital gain, but will my expenditure negate the gain?

Your time living there will negate any CGT liability provided it was your main residence.

frankie1star

while I lived there it was, but when I moved else where will this impact on my liability?

anselld

frankie1star wrote: »

while I lived there it was, but when I moved else where will this impact on my liability?

All the time you lived there plus the final three years are exempt.
http://www.hmrc.gov.uk/cgt/property/sell-own-home.htm

CLAPTON

frankie1star wrote: »

while I lived there it was, but when I moved else where will this impact on my liability?

sounds like nothing but be precise

when did you buy month/year
at what price
when did you move out month year
when did you rent month/year (between dates)
exactly what did you spend and on what
when did you sell
at what price
buy/selling costs

frankie1star

July 2004
249,950
November 2010
November 2010 - November 2013
5k on kitchen
3k on bedrooms
3k for purchase of share of freehold
Novmber 2013
270,000
650 + vat

frankie1star

maths, not right £11k spent

00ec25

ownership period 113 months
lived in period 77 months
gross gain 270,000 - 249,950 - 780 = 19,270

CGT exempt period for private residence relief (PRR) due to occupation 77 + deemed occupation under the final 36 months of ownership rule = total 113 months exempt
amount of gain given PRR: 19,270 x 113/113 = 19,270

CGT liable period : ownership period - PRR period = 113 - 113 = 0
Gain liable to CGT: 19,270 x 0/113 = 0

CGT due = Gain - PRR + liable amount = 19,270 - 19,270 + 0 = NIL
NO CGT gain liable, no tax payable

cost of improvements irrelevant
letting relief irrelevant
personal allowance irrelevant

congratulations you just made £19,270 tax free

frankie1star

of course I wouldn't want to avoid tax in anyway