Capital Gains Tax owed on rental property

boybeck

Would someone be kind enough to help me with a capital gains tax calculation on the sale of a house I used to live in but now rent out.

Period of ownership - 276 months (01/08/99 - 01/08/22)
Period I lived there - 108 months (01/08/99 - 01/08/08)
Period let - 168 months (01/08/08 - 01/08/22)

Bought for £64,500
Sold for £200,000
Gross profit £135,500


This is where I get stuck, I'm unclear about what relief I get?

I am a basic rate taxpayer.

Many thanks.

Jeremy535897

You add 9 months to your period of occupation as a main residence, so 117/276 of the gain is exempt. 159/276 is chargeable, which is £78,060. Assuming you have no other gains, deduct £12,300 annual exemption and the taxable gain is £65,760.

Report and pay any tax due within 60 days of completion. You can amend the figures by deducting costs of acquisition (stamp duty and legal fees), costs of sale (legal fees and estate agent fees) and any improvements reflected in the value of the property on sale. These are deducted from the gross gain of £135,500.

boybeck

That's so helpful, thank you very much. I understand it now.

I was getting confused with letting relief, but as I understand it, that no longer applies anymore and I have never lived with my tenants.

Jeremy535897

boybeck said:

That's so helpful, thank you very much. I understand it now.

I was getting confused with letting relief, but as I understand it, that no longer applies anymore and I have never lived with my tenants.

Letting relief ended on 5 April 2020. As you say, there is still relief where you had a lodger.