Selling my BTL

BevZane

Hi guys i'd really appreciate some help.

I bought a flat back in 2010 which I lived in for 5 years when I was single.

In 2015 I got with my current partner and i decided to rent the flat out so I spoke with a local broker and got a buy to let mortgage.

Times have moved on and i'd really like to sell the flat now so that we can buy a bigger house but i'm really worried about capital gains tax and whether anything would be due. The flat has been rented for about the last 20 months.

Can anyone advise me if capital gains tax would be due?

Thanks!

Bev

ACG

https://www.gov.uk/tax-sell-property/work-out-your-gain
There is a section half way down to do with relief if the property was previously your home.

BevZane

Gosh if i understand the link correctly I must give the HMRC a proportion of the profit I will make from my flat for all the months where it was rented.

I bought the flat for 220,000 in 2010 and its now worth 375,000.

I have owned the flat for 84 months and in total 20 of these months it was rented.

So I have to divide the profit by 84 (£155,000 / 84) and then hand over 20 months of this to HMRC = £36,904???

Wow if that's true!!

ACG

Minus any allowances - £11k - ish?
and any costs (estate agents, solicitors and potentially any improvements?).

Call HMRC and ask them.

Thrugelmir

BevZane wrote: »

So I have to divide the profit by 84 (£155,000 / 84) and then hand over 20 months of this to HMRC = £36,904???

That's the taxable profit. From this is deducted your annual capital gains allowance. Tax payable will then be calculated on the remainder.

Costs of selling the property can be deducted from the gain.