Capital Gains tax

alan_stewart

Hi,

I bought a house in January 2010 then had to move away 7 months later due to my company going bust. I've rented my property out since October 2010 and it's the only property I own. I'm thinking of selling it.

Would I have to pay capital gains tax?

Thanks

noh

alan_stewart wrote: »

Hi,

I bought a house in January 2010 then had to move away 7 months later due to my company going bust. I've rented my property out since October 2010 and it's the only property I own. I'm thinking of selling it.

Would I have to pay capital gains tax?

Thanks

Only if, after taking into account the applicable reliefs and allowances, you made a gain would you be liable to CGT.
Without figures no one can say.

alan_stewart

So the allowance something like £10,900 in profit before i'm liable for the tax?

Annie1960

http://www.hmrc.gov.uk/cgt/property/sell-own-home.htm

See here for details.

The last 3 years are exempt from CGT, so it may be that you have very little, if anything, to pay.

noh

Annie1960 wrote: »

http://www.hmrc.gov.uk/cgt/property/sell-own-home.htm

See here for details.

The last 3 years are exempt from CGT, so it may be that you have very little, if anything, to pay.

18 months now.

Annie1960

noh wrote: »

18 months now.

OK, I hadn't spotted that change.

00ec25

alan_stewart wrote: »

Hi,

I bought a house in January 2010 then had to move away 7 months later due to my company going bust. I've rented my property out since October 2010 and it's the only property I own. I'm thinking of selling it.

Would I have to pay capital gains tax?

Thanks

you are entitled to:
a) private residence relief for the 7 months you lived there;
b) because of a) you also get the final 18 months of ownership as exempt
c) because of a) you can claim letting relief which is the lower of a) above, or the gain in the let period or £40,000 capped amount
d) the personal allowance of £11,000 (tax year 14/15)

here are 2 examples of the calculation you need to do - apply your own numbers to them...

https://forums.moneysavingexpert.com/discussion/4964535

https://forums.moneysavingexpert.com/discussion/comment/65660052#Comment_65660052