Capital Gains help.

Snookie12cat

Can someone advise if I would need to pay capital gains please.

I moved out of my old residential house 5 months ago. I have sold it now but it was empty for a 5 month period while this took place.

Do I have to pay capital gains?

Slithery

If it was your main residence for the entire time apart from the last 5 months then no - you get 9 months 'free' as part of your CGT allowance.

Snookie12cat

Slithery said:

If it was your main residence for the entire time apart from the last 5 months then no - you get 9 months 'free' as part of your CGT allowance.

Thank you - say the sale falls through (I am very optimistic is saying its a done deal)... and the 9 months passes, then how would the tax be payable? Would I be liable for the entire increase in the value that I owned it (12 years), or just the time its sat empty?

RAS

Just for

(the whole time) - (your occupancy + 9 months)  = a month or three?

Bear in mind that you have a £12,300 p.a CT allowance. 

Snookie12cat

RAS said:

Just for

(the whole time) - (your occupancy + 9 months)  = a month or three?

Bear in mind that you have a £12,300 p.a CT allowance. 

Thank you - nothing to worry about then  

RAS

Snookie12cat said:

RAS said:

Just for

(the whole time) - (your occupancy + 9 months)  = a month or three?

Bear in mind that you have a £12,300 p.a CT allowance. 

Thank you - nothing to worry about then  

Unless you're also selling a load of stocks and shares, or the da Vinci.

inkydolphin

RAS said:

Just for

(the whole time) - (your occupancy + 9 months)  = a month or three?

Bear in mind that you have a £12,300 p.a CT allowance. 

So say for example:
- you bought house A on 1 Jan 2012 for £100,000
- lived in it for 10 years until 1 Jan 2022
- you bought and moved into house B on 1 Jan 2022
- put house A on the market on 1 Jan 2022 but didn't manage to sell it for 12 months, selling it for £150,000

Is it possible to work out the likely CGT bill (assuming you have no other dealings in scope of CGT)? No renting or letting involved - just purely buying your new home before selling your old one. 

p00hsticks

inkydolphin said:

RAS said:

Just for

(the whole time) - (your occupancy + 9 months)  = a month or three?

Bear in mind that you have a £12,300 p.a CT allowance. 

So say for example:
- you bought house A on 1 Jan 2012 for £100,000
- lived in it for 10 years until 1 Jan 2022
- you bought and moved into house B on 1 Jan 2022
- put house A on the market on 1 Jan 2022 but didn't manage to sell it for 12 months, selling it for £150,000

Is it possible to work out the likely CGT bill (assuming you have no other dealings in scope of CGT)? No renting or letting involved - just purely buying your new home before selling your old one. 

Yes it is.

(It'll be zero).

inkydolphin

p00hsticks said:

inkydolphin said:

RAS said:

Just for

(the whole time) - (your occupancy + 9 months)  = a month or three?

Bear in mind that you have a £12,300 p.a CT allowance. 

So say for example:
- you bought house A on 1 Jan 2012 for £100,000
- lived in it for 10 years until 1 Jan 2022
- you bought and moved into house B on 1 Jan 2022
- put house A on the market on 1 Jan 2022 but didn't manage to sell it for 12 months, selling it for £150,000

Is it possible to work out the likely CGT bill (assuming you have no other dealings in scope of CGT)? No renting or letting involved - just purely buying your new home before selling your old one. 

Yes it is.

(It'll be zero).

Ok so my attempt to show the workings for this example:

- Whole time house owned = 132 months.
- House occupied as main residence = 120 months, plus 9 months grace period = 129 months.
- Therefore CGT applicable for 3/132 months.
- £50,000 overall profit on house x 3/132 = £1136.36 capital gain
- As this is well inside the £12,300 p.a. allowance, no CGT payable.

Does that sound about right?

p00hsticks

inkydolphin said:

p00hsticks said:

inkydolphin said:

RAS said:

Just for

(the whole time) - (your occupancy + 9 months)  = a month or three?

Bear in mind that you have a £12,300 p.a CT allowance. 

So say for example:
- you bought house A on 1 Jan 2012 for £100,000
- lived in it for 10 years until 1 Jan 2022
- you bought and moved into house B on 1 Jan 2022
- put house A on the market on 1 Jan 2022 but didn't manage to sell it for 12 months, selling it for £150,000

Is it possible to work out the likely CGT bill (assuming you have no other dealings in scope of CGT)? No renting or letting involved - just purely buying your new home before selling your old one. 

Yes it is.

(It'll be zero).

Ok so my attempt to show the workings for this example:

- Whole time house owned = 132 months.
- House occupied as main residence = 120 months, plus 9 months grace period = 129 months.
- Therefore CGT applicable for 3/132 months.
- £50,000 overall profit on house x 3/132 = £1136.36 capital gain
- As this is well inside the £12,300 p.a. allowance, no CGT payable.

Does that sound about right?

Looks good to me.

And you can deduct the buying and selling costs from that £50,000 as well, to reduce the notional gain figure even further.