New landlord

downsizer3

Hi - looking for advice
I'm moving in with my partner and want to rent out my property. I've lived there for 7 years.
I have no intention to sell but will use an agent to let it out and suspect that I'll move back there in my later years ( I'm much younger than my partner and his property will be left to his children)
Do I have to consider Capital Gains Tax? My intention is to leave or transfer the property to my child one day - Is CGT only applicable on sale or transfer?
Thank you!

bigisi

https://www.gov.uk/tax-sell-property

Comms69

downsizer3 wrote: »

Hi - looking for advice
I'm moving in with my partner and want to rent out my property. I've lived there for 7 years.
I have no intention to sell but will use an agent to let it out and suspect that I'll move back there in my later years ( I'm much younger than my partner and his property will be left to his children)
Do I have to consider Capital Gains Tax? My intention is to leave or transfer the property to my child one day - Is CGT only applicable on sale or transfer?
Thank you!

I know you're using an agent, but have you looked at the obligations you have and the rights of your tenants?


Letting out a property with an emotional attachment is very often a bad idea.

downsizer3

Yes I was concerned about that but with no intention to sell I will keep it all via an agent in order to let them deal with the tenants.
Happy for all usual obligations to be met - but living between two houses is an expensive lifestyle.
Thanks for your replies - helpful link but still confused as the private residence elements state that no CGT applicable if you originally bought the property as your home, which I did. Also its under 5000sqm so from that I assume I wouldn't be liable for CGT but if I rent it out for (say) 10 years then move back will I get a big bill one day.....:undecided

Comms69

downsizer3 wrote: »

Yes I was concerned about that but with no intention to sell I will keep it all via an agent in order to let them deal with the tenants. - you may not have that choice. You are responsible for all the legal obligations, so any comeback is on you.
Happy for all usual obligations to be met - but living between two houses is an expensive lifestyle.
Thanks for your replies - helpful link but still confused as the private residence elements state that no CGT applicable if you originally bought the property as your home, which I did. Also its under 5000sqm so from that I assume I wouldn't be liable for CGT but if I rent it out for (say) 10 years then move back will I get a big bill one day.....:undecided

Only if you sell/transfer.


Btw have you got consent to let?

downsizer3

Not yet - just starting to look into it all.
Need the various certificates and checks with mortgage company etc.
All wayyyy more complicated than I imagined in my 'I'll just rent it out' mode of thinking!
At the risk of being fleeced I'm going to contact our local Solicitors Property Centre to seek advice about letting out as I need pointers.
My current mortgage runs out in 2019 so I could wait until then if my mortgage provider won't allow it.

Regarding liability - I was aware of my responsibilities. I'm not going to sell my property just to avoid any hassle - just have to get the right advice I guess and go into it with my eyes open.

Comms69

downsizer3 wrote: »

Not yet - just starting to look into it all.
Need the various certificates and checks with mortgage company etc.
All wayyyy more complicated than I imagined in my 'I'll just rent it out' mode of thinking!
At the risk of being fleeced I'm going to contact our local Solicitors Property Centre to seek advice about letting out as I need pointers.
My current mortgage runs out in 2019 so I could wait until then if my mortgage provider won't allow it.

Regarding liability - I was aware of my responsibilities. I'm not going to sell my property just to avoid any hassle - just have to get the right advice I guess and go into it with my eyes open.

Please read this: https://forums.moneysavingexpert.com/discussion/5180214=

downsizer3

Will do - cheers!

buggy_boy

CGT is not an issue if it is left to children after your death. This is likely the most tax efficient way.

G_M

Re CGT - yes there's likely to be a liablity on sale or transfer, though with allowances for the period it was your own primary residence. so depends how long you owned, how long lived there, how long let out.

Read the guides.


As for landlord liabilities:

* New landlords: advice, information & links

* Letting agents: how should a landlord select or sack?

Both from this thread:

** Tenancies in Eng/Wales: Guides for landlords and tenants

G_M

buggy_boy wrote: »

CGT is not an issue if it is left to children after your death. This is likely the most tax efficient way.

Indeed. And the Inheritance Tax rate is lower than CGT.