Do I pay CGT?

Phoebe19

I brought a property in 2001 and rented it out. At the time I was in the forces, so it was my only property (as I lived in barracks). In 2012 I moved into the property and in 2013 converted it into 2 flats. Since then, I have lived in one of the flats and rented the other out.
I am now looking to move but am very confused about the CGT and don't know what my best option is.
If I sold the whole property (both flats) at the same time, do I pay CGT? If I only sell the bottom flat, do I pay CGT? If I continued to rent out the one flat and now let out the second flat do I lose out in a big way to tax?
Thank you.

Savvy_Sue

The answer is 'it depends', and I'm afraid you probably haven't given nearly enough information. But bear in mind that CGT is a tax on GAINS, and that you have an allowance each year so if your gain doesn't exceed that there'd be nothing to pay, and there are also reliefs for letting it out and for periods when it's been your PPR (Principal Private Residence).

Also it's complicated by turning it into two flats, and you may find it useful to get proper (ie paid for) advice. But having said that, you never pay more in tax than you receive when you sell it, so whether you lose out in a 'big' way is always a matter of perception.

What month in 2001 did you buy the property, and how much did you pay for it?

What month in 2012 did you move in? At that point it became your PPR, so the months from then until now don't count on the flat you live in, but you do also get some lettings relief.

What's it worth now?

Are you a higher rate tax payer? That affects how much CGT you'd have to pay.

The experts may ask more questions.