Capital Gains

billyoung1611

Hope someone can help as being a pensioner I find it so hard to understand HMRC's website 

I bought a property on 2008 for £190000.

I lived in the property for 9 years 

I then rented the property out for 6 years 

I have now sold the property for £280000

Will I have to pay capital gains tax?

Many thanks 

[Deleted User]

Usually calculated in months - we will assume April. 

Owned for 14 years? (9 + 6 does not seem correct) which is 168 months. 

Main residence for 108 months plus 9 months as it was your main residence at some point - 117/168 is exempt. 

Gain is £90000 less legal costs at purchase and sale, say £6000, £84000. 117/168 of £84000 is £58500 leaving £25500. Deduct annual exemption of £12300 leaves £13200 chargeable at 18% or 28% or a mixture of both depending on your other income. 

Gain must be declared and tax paid within 60 days of completion/ contract exchange.

billyoung1611

Many thanks greatly appreciated .Just one query. I read something about Residents relief but also Letting relief ,would I qualify as I rented the property out for 60 months 

[Deleted User]

Lettings relief withdrawn for disposals after 5th April 2020.

billyoung1611

Ok thanks for that .a lot clearer now