CGT on house sale - a couple of questions please!

Aswell13

A couple of quick questions I have:

Bought a house in 2000 for £150,000, moved out in 2010 and rented out house - its value then was £250,000, sold house in 2022 got £400,000.

1: is capital gains tax on profit from original purchase (£250,000) or from the value when moved out (£150,000)?

2: is the personal allowance applicable just for the year you sold it (£12,000 ish) or does it accumulate from the day we moved out, in this case 12 years worth?

Many Thanks, Brian

p00hsticks

1. The interim valuation of £250k is irrelevant. You take the profit as (selling price - buying price), less the costs in buying and selling, but the calculation then makes allowance for the proportion of time in months for which it was your primary residence, plus an additional nine months.

2. Just the year you realise the gain.

There is a calculator here - you need to work out how long you owned it in total, in months, and for how many of those it was your PPR

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

Note that you only have sixty days after completion of the sale to pay any CGT due

Aswell13

Thanks for your reply, I went into the calculator but nowhere did it ask me how long I lived in the property (my primary residence) before we rented it out.

What am I missing?

We have 'sold' the house but not yet completed so I assume the 60 days has not started yet.

Thanks.

[Deleted User]

Using June as the month - June 2000 to June 2022 is 264 months of ownership. Moved out in June 2010 - so 120 months as main residence and you can add 9 more as it was main residence at some point. Gain is 250000*- 129/264 is exempt - 122159 leaving 127841. From this you can deduct 12300 CGT allowance leaving 115541 chargeable. 

Tax must be paid and gain declared within 60 days and must also be included on a self-assessment tax return. 

* remember to include buying and selling costs.

[Deleted User]

Aswell13 said:

Thanks for your reply, I went into the calculator but nowhere did it ask me how long I lived in the property (my primary residence) before we rented it out.

What am I missing?

We have 'sold' the house but not yet completed so I assume the 60 days has not started yet.

Thanks.

Further to my reply above - I note that there is a ‘we’. If two owners, each will declare half of each figure, will have a CGT allowance each and will both have to complete tax returns.

Aswell13

Thanks for your reply, again, having gone through the tax page calculator nowhere did it ask me how long we lived in the house before we moved out. But I am glad we can remove the assumed gain on the value of the house whilst we lived there.

I am missing something somewhere.

[Deleted User]

Aswell13 said:

Thanks for your reply, again, having gone through the tax page calculator nowhere did it ask me how long we lived in the house before we moved out. But I am glad we can remove the assumed gain on the value of the house whilst we lived there.

I am missing something somewhere.

No it doesn’t - but it does ask if you are entitled to private residence relief, which in my example, came to 61080 each - which you must enter. Obviously you will have to adjust according to the actual months as I randomly chose June.

Aswell13

Ah! OK that makes sense. I went there in the calculator but could not decide if this was the right place or not!