Capital Gains Question

masonj3

Hi

I was wondering if you could tell me if CGT tax should of been paid in these circumstances

Property purchased in Jan 83 (husband & wife) purchase price was £18000. (Property A)

In 1985 the lease was purchased for £2025.40

A second property was purchased in 2001 solely in wifes name. Neither moved into Property B until Feb 2006

Feb 2006 - Jan 2012 Property A was rented out privately.

Property A was sold in Jan 2012 for £155000

1) Should CGT have been paid ?
2) Would property A have been classed as husbands & wifes main home?

Any advice appreciated - thank you 😊

masonj3

Asking for elderly person who is worried that the info they had in 2012 was incorrect, HMRC have not made contact and nor was I asking for calculations to be made.

The advice they was given in 2012 was that it was the last 3 years of ownership that was added to PRR not 18 months which is one of the pieces of information I had wanted to clarify, I also wondered if property A would have been classed as their main residence. They were advised that there was no CGT to pay and have never been chased. Husband has since died, wife trying to get her affairs in order and is worried they may have been misinformed and if so would like to rectify matter.

Spidernick

It was the last 36 months in 2012:

http://www.abacni.co.uk/wp-content/uploads/2012/05/PPR-and-Letting-Reliefs-Helpsheet.pdf

If no PPR election after purchase of second property then it would be based on the facts. If living in A then it would seem that that would be the PPR until February 2006, but this is only speculation.

On that basis, PPR period (all but 3/29ths) plus letting relief would seem to leave a nil gain chargeable, based on details provided and a thumb-nail calculation.

masonj3

Spidernick wrote: »

It was the last 36 months in 2012:

http://www.abacni.co.uk/wp-content/uploads/2012/05/PPR-and-Letting-Reliefs-Helpsheet.pdf

If no PPR election after purchase of second property then it would be based on the facts. If living in A then it would seem that that would be the PPR until February 2006, but this is only speculation.

On that basis, PPR period (all but 3/29ths) plus letting relief would seem to leave a nil gain chargeable, based on details provided and a thumb-nail calculation.

Thank you Spidernick - that helps a lot and is practically identical to the advice that they were given. Appreciate your time & help xx