Capital Gains Tax

clukka24

My flat is rented out to a tenant. I am selling the property at the end of their tenancy and buying another property with the proceeds. 

I am currently living in rented accommodation and have been for two years , whilst renting out my flat. 

Will I be liable for CGT? 

I bought the flat for £200k and it will possibly sell for £300k, would I pay CGT on the profit, less my allowance of £12300? Or would I pay CGT at all, if buying another place immediately?

thanks to anyone who can help me or point me to someone who could please? 

AnotherJoe

You'd pay CGT on the £100k minus the expenses of buying it and selling it ( the EA fees, legal fees etc) minus The CGT allowance.
What you do with the proceeds afterwards, be that buy another house, a Lamborghini or a crate load of fluffy kittens, makes no difference to your CGT liability. 

AdrianC

Yes, you may be liable for CGT.

What you do with the proceeds of the sale is irrelevant to the liability. It's purely based on the gain in capital of that particular asset.

clukka24

Great, thanks 

greatcrested

Of course, if you have recently sold that Lamborghini at a profit and already used your CGT allowance for this year, you cannot claim it a 2nd time...

theartfullodger

Depends if CGT rules when you sell.  These rules change!

silvercar

It may be worth moving into the property before you sell it.

allconnected

greatcrested said:

Of course, if you have recently sold that Lamborghini at a profit and already used your CGT allowance for this year, you cannot claim it a 2nd 

No CGT on cars even if they sell at a huge profit. They are exempt - otherwise everyone would be claiming a big capital loss on the 99.999999% of cars that lose rather than gain value while owned.

allconected.

Falafels

silvercar said:

It may be worth moving into the property before you sell it.

Even so, the OP would still have to pay CGT on a proportion of the profit as the flat has not been his/her main residence for the entire length of ownership. Here's a useful link to help calculate it: https://www.gov.uk/tax-sell-property/work-out-your-gain