CGT apportionment

steve7487

We have a flat which we have lived in for 7 years and have now just let. Over the seven years it has increased in value (the capital gain) by some 40%, but it is safe to say that it is now growing at 0% or less and this is likely to continue for some time. Suppose we continued to let it then sold it in another 7 years time. It would appear that we would be liable for CGT for the period it was let less a 1.5 year bonus, however there would actually have been no capital gain in this period. Is the gain always calculated on a straight line basis from date of purchase to sale, or is it worth getting it valued now so to prove when the increase in value actually occurred?

anselld

Buying and selling prices only. The market value now and the precise timing of gains are irrelevant.

ProDave

hmrc takes the buy and sell price and assumes linear growth in the period owned. Not negotiable.

Very basically Private Residential relief means no CGT for the period it was your primary residence AND the last 18 months of ownership regardless of the use in that 18 months.

Letting relief is a bit more complicated but applies to properties that have formerly been your main residence and are now let. That is likely to reduce any CGT but you need to do the actual sums.

I think you would have to let it for a long time before any CGT becomes due, and even if it does there is your personal CGT allowance to use up before you pay anything (2 personal allowances if jointly owned)

00ec25

straight line basis only

see here for the mechanics of the calculation
if jointly owned then the gain is split according to respective shares and each person claims PRR, LR and personal allowance against their individual share of the gain

https://forums.moneysavingexpert.com/showpost.php?p=73621764&postcount=2

steve7487

Thank you for your replies anselld, ProDave, and OOec25. It looked that way from what I have gleaned so appreciate your confirmation, and additional information.