CGT on 2nd property.

[Deleted User]

POPPYOSCAR wrote: »

I have amended it to £33,500.

Are the rest of the calculations right please?

They look fine - don't forget to include buying and selling costs!

POPPYOSCAR

[Deleted User] wrote:

They look fine - don't forget to include buying and selling costs!

Thank you.

Just using approximations to see if I have the basic formula right.

Brighty

Owned for 30years, lived in for 9, rented for 15, what happend for the other 6 years, empty?

POPPYOSCAR

Brighty wrote: »

Owned for 30years, lived in for 9, rented for 15, what happend for the other 6 years, empty?

It was empty for a while before being worked on, then gaps between lettings. Also family and friends lived there rent free when they needed to and it was empty.

Does this make any difference?

Brighty

Think the letting period is the total from when you started letting it to when you stopped, so you can still count gaps of a month or 2 between tenants. Maybe, best someone more in the know answers that

[Deleted User]

POPPYOSCAR wrote: »

It was empty for a while before being worked on, then gaps between lettings. Also family and friends lived there rent free when they needed to and it was empty.

Does this make any difference?

Worked on? Were these capital improvements which would be added to your property costs for CGT purposes?

Brightly - you are very observant. However surely any calculation on a reduced period would still be way in excess of the maximum if £40000? Approx £170000.

POPPYOSCAR

[Deleted User] wrote:

Worked on? Were these capital improvements which would be added to your property costs for CGT purposes?

Brightly - you are very observant. However surely any calculation on a reduced period would still be way in excess of the maximum if £40000? Approx £170000.

Completely redecorated, new bathroom, kitchen, old falling down conservatory taken down.Patio laid. New boiler, shower fitted etc.

But this was 30 years ago no receipts or proof would be available.

How does the property not being rented out for the other 6 years affect the calculation of 15 years rental when it was?

[Deleted User]

POPPYOSCAR wrote: »

Completely redecorated, new bathroom, kitchen, old falling down conservatory taken down.Patio laid. New boiler, shower fitted etc.

But this was 30 years ago no receipts or proof would be available.

How does the property not being rented out for the other 6 years affect the calculation of 15 years rental when it was?

My point was that, even if it was let for only 9 years rather than 15, the letting relief calculation would become 108/360 x £530000 which is still considerably above the £40000 max.

POPPYOSCAR

[Deleted User] wrote:

My point was that, even if it was let for only 9 years rather than 15, the letting relief calculation would become 108/360 x £530000 which is still considerably above the £40000 max.

So the fact that it was owned for 30 years lived in for 9 rented for 15 leaving 6 years bears no relevance to the calculations?

00ec25

BoGoF wrote: »

But the personal allowance cannot be offset against the Capital Gain so only 33,500 would be chargeable at 18%?

oops, early morning pre coffee post thinking of the 18/28% threshold, not the 0/18% one, yes you are of course correct