Help with CGT on property sale

timcrouch

Hello,
I've sold a property for the first time and would like some help please on my CGT liability. The basic facts are:

- I purchased a flat in July 2002 for £128,000

- I lived in the flat until August 2005 (when I moved to a house with my now wife) and then started letting it out.

- I sold the flat in July 2014 for £175,000

I understand I can make deductions (e.g. estate agents fees) and that there may also be allowances for the time I lived there etc. Does private residence relief help? How does it work? Also, if the gain was split with my wife, does that help?

Any help on calculating this would be very much appreciated - I'm a novice with this sort of thing!

Thank you!

Tim

Pennywise

That's a very wide question that would take a lot of explaining to go right back to basics.

A good starting point is the gov.uk helpsheet on private residence relief which explains about it and also lettings relief. Have a read and then come back with any particular queries you have.

https://www.gov.uk/government/publications/private-residence-relief-hs283-self-assessment-helpsheet

jimmo

The answer you were given last time you asked needs updating to take account of the revised selling price.
That's just sums.
https://forums.moneysavingexpert.com/discussion/4902475

CLAPTON

timcrouch wrote: »

Hello,
I've sold a property for the first time and would like some help please on my CGT liability. The basic facts are:

- I purchased a flat in July 2002 for £128,000

- I lived in the flat until August 2005 (when I moved to a house with my now wife) and then started letting it out.

- I sold the flat in July 2014 for £175,000

I understand I can make deductions (e.g. estate agents fees) and that there may also be allowances for the time I lived there etc. Does private residence relief help? How does it work? Also, if the gain was split with my wife, does that help?

Any help on calculating this would be very much appreciated - I'm a novice with this sort of thing!

Thank you!

Tim

since you had very comprehensive help in your last thread I will only fill one gap.

cgt is payable by the owner(s) and so your wife can be involved and only claim cgt allowance if she is a (part) owner.
It would be unfortunate if she was a part owner as she probably wouldn't have been eligible for PPR and so the total tax bill would be higher.

jimmo

booksurr wrote: »

would be nice to know that posters on these boards take notice of the answers we give them wouldn't it!

Know what you mean but don’t hold your breath on this one. As it happens I looked at the site shortly after you posted and, at that time, the OP was logged in and viewing the original thread.
Ho hum.

timcrouch

Yikes - there's a lot of passive aggression on here.
I'm one of the many who get confused and worried about tax affairs and I posted again as I am very conscious that the law, rules and rates continually change and because, unlike last time I posted, I have real figures this time. Still, all done, I shall bother you all no longer.