Capital gains tax

Capitalgainstaxvictim

Hi please can someone help me . I have owned 1 property for 20 years and after living in it for two years I rented it out and moved in to my partners house . The relationship failed and I then moved into rented accommodation that was near to my parents so they could help with childcare whilst I worked. The income I received from the property I owned payed for my rent. I self assessed and payed any tax due every year, which was very little most years.  My question is am I subject to CGT if I now sell the property since I only own 1 property. All help gratefully received, thanks 🙏 

Slithery

Yes, you are. Probably quite a lot of it as well.

If you can let us know the dates that you purchased, moved out and intend to sell as well as the value when you bought and the current value then we'll be able to run some rough calculations for you. Also what band tax-payer are you?

The number of properties that you own makes no difference to your CGT liability.

Capitalgainstaxvictim

thank you that is what I feared. I am a lower rate tax payer and the property has been rented from September 2000 until September 2019. I know I can minus the last 9 months so that makes it December 2018. The current value is £ 350,000 and I payed 88,000. There are costs of about £20,000 as I brought my ex out but I feel sick just thinking about how much this is going to be . I am basically trapped and will have to move back in as selling it will not leave me with enough money to even re buy a property of similar size. 

I am sorry that sounds like a pity party given the world situation, at least I have a home.

user1977

You only pay CGT by making a (big) capital gain, which you appear to be doing here. You still walk away with the vast majority of the money, what's the "victim" thing all about?

bolwin1

user1977 said:

You only pay CGT by making a (big) capital gain, which you appear to be doing here. You still walk away with the vast majority of the money, what's the "victim" thing all about?

Absolutely agree - makes a quarter of a million quid by doing nothing other than owning a property & complains that some tax may be due.  

theartfullodger

Capitalgainstaxvictim said:

..............payed for my rent. I self assessed and payed any tax due every year, which was very little most years.  My question is am I subject to CGT if I now sell the property since I only own 1 property. All help gratefully received, thanks 🙏 

Yes.  Declare & pay CGT within 60 days of sale..

With Covid & Bre**it to be paid for (HUGE amounts) I'm expecting taxes to go up, particularly things like CGT on rented properties, so I'm guessing/expecting CGT on such properties will go up.. 

dimbo61

https://www.gov.uk/tax-sell-property/work-out-your-gain

This might help you work out what you need to pay