Selling a second home

ggboy1978

I am currently selling a property that was my main residence but since moving in with my partner I have been letting to a friend and make no money from it. I will make approx £25,000 profit from the sale therefore what if any tax will be liable. I am a lower rate tax payer and the property is on a residential mortgage with consent to let.

Keep_pedalling

How long have you owned it and how long did you live in it?

ggboy1978

I purchased it in December 2016 and lived in it for 12 months before moving in with my partner. Should also add this is the only property I own. The house I live in is owned by my partner.

00ec25

ggboy1978 wrote: »

I purchased it in December 2016 and lived in it for 12 months before moving in with my partner. Should also add this is the only property I own. The house I live in is owned by my partner.

you will pay nothing

sold "now" so let's say Oct 18
it was once your main/only home so on that basis you are entitled to claim the final 18 months of your ownership period as "deemed occupation" which is included as "PRR" (Private Residence relief)
so Oct 2018 less 18 months of deemed PRR takes you back to May 2017

you purchased in Dec 16, and lived there as your main/only home for 12 months, so that takes you to at least Nov 17 for your period of actual occupation eligible for PRR.

therefore, your entire ownership is covered by PRR leaving zero taxable gain and hence no tax to pay

£25,000 profit after all costs have been paid in less than 2 years is impressive

ggboy1978

Thanks for that info that's great. Yeah got lucky with the purchase price !