CGT on previously let property now primary residence

gipsybabe

Hi, I have a flat that I bought in 1998 and lived in until 2005 where it was then rented out and when I moved in with my partner. Tax was paid on this rental income. My partner and I have now split and I am moving back into flat later in the year where I will live until I ever come to sell it to buy another property to live in. I am aware of all the CGT rules re tax on rental property when selling but I wanted to check if the fact that when I come to sell it will be my only residence do I have to pay CGT? My sis in law thinks not but I think I do. Thank you.

Bluebirdman_of_Alcathays

You will have to pay GGT for the period when it was not your primary residence. The total gain when you sell is apportioned across your ownership, usually by months. Periods when you were resident are excluded. You can also get letting relief for the period it was let out. There is also an annual allowance of £11,100. It is possible you may have nothing to pay, it all depends on numbers.


Here is an example, although be aware it's from 2010 - the last 3 years deemed PPR has changed to last 18 months, and the annual exemption has changed. There are better examples if you trawl this forum.




http://taxaid.org.uk/wp-content/uploads/2010/06/Capital-Gains-Tax-example.pdf

gipsybabe

Thank you . That is what I thought.