Working out capital gains on house sale.

shamac

We started to self build a house in 2002 with a Staged release mortgage, paid 25k cash for the land and had a £140k mortgage by the time it was completed. Took us 3 years to build-we rented during this time.

We lived in the house for 18 months full time once it was complete and then started renting it out as a holiday cottage.

We want to sell up and think we will get about 300k for the house, it is owned jointly, one person a higher rate tax payer, the other basic rate. Our current mortgage on it is £130k interest only.

How do we go about working out approx how much capital gains we will be paying.

We now live in another also mortgaged property.

00ec25

any mortgage is irrelevant

the cost of building is the cost of building (+ purchase cost of land obviously)

you had 12 months from date of buying the land to complete the build. If it took longer then your date of ownership of the property starts from the 13th month whether it had achieved practical completion or not by then

the rest is explained here: https://forums.moneysavingexpert.com/showpost.php?p=73621764&postcount=2

shamac

Thanks and for the link which is really helpful. I understand from looking at the HMRC website that as it has been used as a Holiday let (and it fits all the criteria to be one) that we can possibly claim Entrepreneurs Relief, what I'm not clear on is whether that is on top of other reliefs or replaces one of them-The letting relief for example.