Capital gains tax calculation help

martyn_

Hello folks... another person confused by capital gains tax calculations here, looking for some assistance. Mostly around the private residence relief calculations.

I've had a look at similar calculations from similar posts, but have gotten a bit stuck at the final figure.

Here's the numbers:

I bought the property in Feb 2010 for 108,000.

I lived there as my main residence until 27 Jan 2018 when I moved in with my partner (in a property they owned).

It was let out from 27 Jan 2018 until 27 Feb 2020.

I was responsible for the property until a new tenant went in on 18 Jun 2020 (due to covid restrictions etc.). I didn't live there, but had to pay council tax and utilities.

It was let out again from 18 Jun 2020 to 19 Jan 2022.

I was again responsible for the property after the tenant vacated, preparing it for sale, but again didn't live there.

I completed the sale of the property yesterday (4 May 2022) for 160,000.

I believe that makes the following:

Ownership period: 146 months

Lived in as main residence: 95 months

9 month exemption (not sure about this?!)

6 months of responsibility (I'm guessing I can't claim this as it wasn't my main residence?)

Gain period: 42 (or 36?) months.

Gain amount: 160,000 - 108,000 = 52,000

Chargeable gain: 52000 * 42 / 146 = 14,959

Minus the personal allowance: 14959 - 12300 = 2,659

Does that look about right?

The gov.uk calculator gives me a bit less than the £52K number because I've included the costs of sale/purchase as it was asked for.

When the calculator asks the question "How much Private Residence Relief are you entitled to?" what do I put there? Is that the non chargeable gain amount - i.e. 52,000(ish)-14,959?

Thanks in advance!

p00hsticks

I'm no expert, but that looks about right to me, apart from the fact that you you don't appear to have included any buying or selling costs, which - as the gov calculator suggests - you can use to reduce the gain (sorry, I'm not sure at which step they get factored in). 

Jeremy535897

The 6 month period does not qualify. Your figures look about right (might be 147 months ownership). The private residence relief is as you say. The costs of purchase and sale reduce the gross gain before private residence relief.