Renting my property for 1 year then selling

where

I own a flat that I live in which is my only property.

I would like to go travelling for a year and on my return sell the flat and relocate somewhere else.

While away I am thinking of renting the flat out to make a little money to cover my trip. I understand that I will have to pay tax on the rental income, that fine, I'm ok with that.

My question is: when I come to sell if the property has increased lets say by £10k while it has been rented out will the taxman want a percentage of this money and if so how much?

The other question is: is it worth getting the property valued and the quote put in writing by the estate agent so you can show this is how much it was worth while still living there before it was rented out and when sold I would have the sale and this would be the taxable amount?

Thanks for any help. I am a little concerned that by renting it out I may pay dearly in tax rather than just leaving the place empty in which case the whole of the sale value would be mine.

slopemaster

IIRC....
So long as it was your main residence until now, you are allowed to let it out for up to 2 years without having to pay any capital gains tax at all.

anselld

slopemaster wrote: »

IIRC....
So long as it was your main residence until now, you are allowed to let it out for up to 2 years without having to pay any capital gains tax at all.

18 months.

G_M

Links to HMRC in the post below:

[FONT=&quot]New Landlords[/FONT][FONT=&quot] (information for new or prospective landlords)[/FONT]

[FONT=&quot]Letting Agents [/FONT][FONT=&quot](Tips for selecting, and tips for sacking them)[/FONT]

dimbo61

The Tax you are worried about is Capital Gains Tax and this only applies after 18 months of renting out the property.
Even then you have a CGT ( Capital Gains Allowance ) of £11,000 this year plus renting relief so would pay very little if any tax if you sell in 1/2/3 years.
However renting out has its risks and the property can quickly become/look run down

HB58

I think you should have a look at the responsibilities that go with being a LL. You would have to appoint someone to look after the property while you are away and pay them if you use a commercial firm.

Decide whether you think it is more trouble than it would be worth!

where

Thank you to all who responded.

misssaver12

I rented my place out for a year, got a recommended letting agent to find tenants who were professionals but seems to be more like students !
Never again. I have learnt so many lessons.
Late payment of rent, the house is not maintained and looks very run down and shabby. Decided to sell and had the hassle of organising viewings with the tenants in or wait till they leave.
Been hit with the council tax for the empty house even though I have a buyer for the place and it's empty ( they have given me a month from the end of thre tenancy without paying then it's the full rate I was told when I called)

So whilst waiting for the sale to go through it's costing me for an empty house:
Mortgage
Council tax
Electricity, gas, water bills.( solicitor insisted that all were still active on sale, as tenants reposible for the phone I have not taken that on and written to solicitor informing them why)
Time and money to tidy and present it after tenants have left including repairing 'wear and tear'

Requested sale goes through soon as still not confirmed a completion date.

If I was considering this option a year ago I would sell... House was far better presented and you won't have any concerns or possible expensive bills whilst you are away. May have got a better price... Viewers all commented that the place looked tired and needed refurbishment.

Mind you could be lucky and have great tenants !!