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Capital Gains Tax

financialhelpneeded
financialhelpneeded Posts: 1 Newbie
in House buying, renting & selling
Hi,
Please help I have no clue what I am doing haha!


April 2012 I bought a house with my boyfriend
October 2015 We broke up and I bought him out of the house
February 2016 I rented it out on my residential mortgage and moved to private rented accommodation
Oct 2018 I renewed it as a buy to let mortgage


With regards to capital gains where does that leave me?
I have to pay full whack or do I get private residence relief?
If I have to pay full whack (seems so unfair given I only own one property and have to pay rent elsewhere), how long would I have to move in for it to become my permanent residence? Would that work or do i still have to pay gains on the time it wasn't my 'home'?


Thanks so much!

Comments

  • theartfullodger
    theartfullodger Posts: 16,036
    Part of the Furniture 10,000 Posts Name Dropper
    Forumite
    You have accounts for each tax year? You have been declaring you rent income,even if making a loss?

    You have valuations for when you started renting? CGT tax rules change I think 6th April 2020. When are you expecting to sell?

    Do the RLA CGT course. And buy a book on property taxes. There are more than 10 taxes a landlord may pay, don't just concentrate on CGT.
  • anselld
    anselld Posts: 8,781
    Part of the Furniture 1,000 Posts Name Dropper
    Forumite
    It seems unlikely you would pay any CGT if you lived there for 4 years prior to renting and you are selling a little over 2 years later. However, there is insufficient detail to do the sums.
  • AdrianC
    AdrianC Posts: 42,189
    Eighth Anniversary 10,000 Posts Name Dropper
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    anselld wrote: »
    It seems unlikely you would pay any CGT if you lived there for 4 years prior to renting and you are selling a little over 2 years later. However, there is insufficient detail to do the sums.
    It's been rented for over 3.5yrs - Feb 16 to now.

    PPR relief is currently 18mo, but may go down to 9mo - so currently the CGT-liable period is just over the last 2yrs.
  • 00ec25
    00ec25 Posts: 9,123
    1,000 Posts Combo Breaker
    Forumite
    edited 9 October 2019 at 8:19PM
    AdrianC wrote: »
    It's been rented for over 3.5yrs - Feb 16 to now.

    PPR relief is currently 18mo, but may go down to 9mo - so currently the CGT-liable period is just over the last 2yrs.
    ownership as @ now 7.5 years
    PPR as @ now 3.75 +1.5 = 5.25 years

    70% of the gain gets PRR
    the remaining 30% gets LR (if sold before April 2020) subject to the 40k cap

    in reality, unless we are talking about a property with a gain approaching £150k, it's near impossible for the net gain to be >£0 given those relative fractions
This discussion has been closed.
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