CGT calculation on property sale 8 November 2022 at 1:12PM in Cutting tax 2 replies 64 views

Norma21

Hello all, I'd be grateful for any help or advice on a CGT calculation is it's currently hurting my brain!

We have a flat, owned and lived in by us since 1990.  We moved out in 2003 since which time it has been rented out however the last tenant has now left and the time is right to sell.  We are trying to work out the CGT liability but are getting confused by PRR and lettings relief and if either of these apply how to work out the reduction.
The flat was purchased for £40k and looking to market for £150k.

Many thanks in advance   

eskbanker

The calculation is shown in another thread about a very similar sale:

https://forums.moneysavingexpert.com/discussion/6400987/cgt-on-house-sale-a-couple-of-questions-please

purdyoaten2

Taking ‘we’ as two people and assuming December is the month used in each year. Owned December 1990 to December 2022 - 384 months. Lived in to December 2003 156 months and add 9, making 165, as it was main residence at some point. The gain (to be further reduced by buying and selling costs) is £110000. PRR is 165/384 x 110000 is 47265 leaving a gain of 62735. You each declare half of all these figures before each deducting 12300 annual exemption. 

The gain must be reported and tax paid thereon within 60 days of completion and included on the self-assessment tax returns for 2022/23. 

Lettings relief is long gone!