We’d like to remind Forumites to please avoid political debate on the Forum.

This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.

PLEASE READ BEFORE POSTING: Hello Forumites! In order to help keep the Forum a useful, safe and friendly place for our users, discussions around non-MoneySaving matters are not permitted per the Forum rules. While we understand that mentioning house prices may sometimes be relevant to a user's specific MoneySaving situation, we ask that you please avoid veering into broad, general debates about the market, the economy and politics, as these can unfortunately lead to abusive or hateful behaviour. Threads that are found to have derailed into wider discussions may be removed. Users who repeatedly disregard this may have their Forum account banned. Please also avoid posting personally identifiable information, including links to your own online property listing which may reveal your address. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
The Forum now has a brand new text editor, adding a bunch of handy features to use when creating posts. Read more in our how-to guide

Capital Gains Tax

clukka24
clukka24 Posts: 8 Forumite
First Post
edited 19 July 2020 at 8:07AM in House buying, renting & selling
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? 

Comments

  • AnotherJoe
    AnotherJoe Posts: 19,622 Forumite
    10,000 Posts Fifth Anniversary Name Dropper Photogenic
    edited 19 July 2020 at 8:24AM
    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
    AdrianC Posts: 42,189 Forumite
    Eighth Anniversary 10,000 Posts Name Dropper
    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
    clukka24 Posts: 8 Forumite
    First Post
    Great, thanks 
  • greatcrested
    greatcrested Posts: 5,925 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    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
    theartfullodger Posts: 15,952 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    Depends if CGT rules when you sell.  These rules change!

  • silvercar
    silvercar Posts: 50,602 Ambassador
    Part of the Furniture 10,000 Posts Academoney Grad Name Dropper
    It may be worth moving into the property before you sell it.
    I'm a Forum Ambassador on the housing, mortgages & student money saving boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Forum Ambassadors are not moderators and don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com (it's not part of my role to deal with this). Any views are mine and not the official line of MoneySavingExpert.com.
  • allconnected
    allconnected Posts: 121 Forumite
    Part of the Furniture 100 Posts Name Dropper
    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
    Falafels Posts: 665 Forumite
    Fourth Anniversary 500 Posts Name Dropper
    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
★ ★ ★ Meet your Ambassadors

🚀 Getting Started

Hi new member!

Our Getting Started Guide will help you get the most out of the Forum

Categories

  • All Categories
  • 353.8K Banking & Borrowing
  • 254.3K Reduce Debt & Boost Income
  • 455.2K Spending & Discounts
  • 246.9K Work, Benefits & Business
  • 603.4K Mortgages, Homes & Bills
  • 178.2K Life & Family
  • 260.9K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 16K Discuss & Feedback
  • 37.7K Read-Only Boards

Is this how you want to be seen?

We see you are using a default avatar. It takes only a few seconds to pick a picture.
Update Your Picture