How CGT would I pay?

amawson

Hello, I’d like to know how much CGT (if any) I need to pay if I sell my flat. I don’t own a 2nd home and currently annually I earn £75k. 

I bought my flat for £175,000 in August 2006 and lived in it until August 2011. I let it out initially as a temporary measure in August 2011 and I continued letting until April 2021. I understood at that time of letting that I would not have to pay CGT if I later sold it, but I think the law changed in 2015 relating to this. Anyway, Assuming I sell for £300,000, how much CGT would I pay? 

Also, If I use all the money to buy another property to live in and none of the money goes into my bank account, do I still pay CGT?

Thanks!

[Deleted User]

Owned flat for 186 months. Lived in it for 60 (assuming not lived in it since April 2021). Add 9 months for having lived in it at some period so 69/186 exempt. 

69/186 x gain of £125000 exempt which is 46371 leaving 78629 before deduction of annual exemption of 12300. £66329 is chargeable at 28% or a mixture of 18% and 28% depending on your other income. You must report and pay CGT within 60 days of sale.

Nice idea on the rollover into new purchase- not applicable I am afraid.

Also not sure on the 2015 rule change to which you refer.

amawson

Thank you very much for your clear reply.
Re the 2015 rule change (i'm not sure where I got this date from tbh), but I understood there was a time that if you only ever owned one property, then you would never have to pay tax when you sold it, regardless if you let it out or not. Do you know if this was this is ever the case? I could be mistaken.

[Deleted User]

amawson said:

Thank you very much for your clear reply.
Re the 2015 rule change (i'm not sure where I got this date from tbh), but I understood there was a time that if you only ever owned one property, then you would never have to pay tax when you sold it, regardless if you let it out or not. Do you know if this was this is ever the case? I could be mistaken.

Owning only one property is not the relevant criteria - it is only having one principal private residence which is paramount. In short, you have to have lived in it!

Jeremy535897

There was a lettings relief available for a property you let, but also lived in as your main residence for some of your period of ownership, and that often wiped out the gain. It was abolished from 6 April 2020 (except for limited cases where you still lived in the property while letting it).