Capital Gains On Property>>>>aargh!!

heccus

Please can someone help?

I bought a house before which i had been lodging with a friend/colleague.
However, after moving in to my new house for about 3 weeks, just enough time to buy a bed and stuff, |I realised i was in love with the giirl i had been lodging with! (Luckily she felt the same way!) So moved back in with her (this time in the biblical sense!) and let my house out.
My house was let for 32 out 0f 54 months owned and ihave now sold it . I lived there for short spells while it was not let when the relationship went through a bad patch. Does it count as my PPR or will i need to pay CGT? (Out of 54 months owned it was not let for 22 months).
Wish they told you about all this stuff at school!
I'd really appreciate any tips. Thanx.

fengirl_2

The gain for the period during which you lived in the property is exempt, as is the last 24 mths of owndership. In addition, there is a general exemption of £45k on property which has been your only or main residence and then let, so I dont think you will have anything to pay.

CLAPTON

did you declare the rental income to the HMRC?

the general calculation is somthing like this

the period you lived there in months plus the last 36 months is exempt.

then you have letting relief which is the lesser of
the gain when let or
the gain for PPR purposes
or 40,000

then you have taper relief for 4 full years of 10%
then you have you cgt allowance of 9,200

it will probably come to zero.

silvercar

I can't work out whether the not let time is time it was your PPR or time it was empty awaiting tenants.

If the revenue accepts that the first few weeks of ownership were genuinely the time it was your PPR, then you will be exempt for those few weeks and the last 3 years of ownership plus those months that it was your PPR in between.

Additionally you will be entitled to letting relief (though this is capped at the lower of the amount of PPR you get and £40,000).

4 complete years of ownership will give you a further 10% of taper relief.

You also have a CGT allowance of £9,200.

If the revenue view a few weeks ownership before letting as suspicious and won't accept it, then you may end up paying CGT on the whole lot (less the 9,200 CGT allowance and 10% taper relief).

Evidence would include utility bills in your address, electoral register, tax letters, employer notified address....

heccus

WOW! You guys are amazing! Why do Clapton & Silvercar only have 4 stars after their names?! Fengirl, you deserve a few more stars too!

I can't thank you all enough for helping to put my mind at rest. Reading your replies alongside the HMRC Help Notes really helps to clarify their gobbledegook!

Silvercar, I have had a hunt and found a few old elctricity & gas bills plus a Council tax bill. Do you think this would suffice as evidence if HMRC were to decide to investigate?

And, yes, I did declare the rental income (managed to get that bit right on my own!)

Big thanks again...........