Calculating Capital Gains with Job Related Accommodation and Private Residence Relief on a rental.

Kelpieboy

Good evening all, I have a little question.........

We are planning on selling our rental house in the very near future, but we had Job Related Accommodation (JRA) with MoD accommodation, provided by my employer, and Private Residence Relief (PRR) to consider in the final bill, so I really need some assistance please.

I’ve been looking at the Capital Gains Manual, para’s s222 TCGA 92 and CG64555 states that: Married Quarters/MoD housing is under licence, and therefore not a residency, this certainly sounds like good news.

We bought the house on 20 Nov 1998, I lived in JRA at the time, and then Married Quarters (MQ’s) up until I moved into our home full time on 10 Oct 2008.

My then fiancé lived with her parents when we bought the house until we got married, she moved into JRA/MQ’s on 30 June1999, until she moved into our home full time on 12 Nov 2007.  

During our time in JRA/MQ’s the house was not rented out.

We moved out on 28 May 2010, and our tenants moved in on 16 July 2010.

Our tenants will leave on 30 March 2024, final date to be confirmed, and then it will be put on the market.

 Here are the facts and figures:

 Date bought – 20 Nov 1998.

Cost - £87950, bought jointly.

Stamp Duty - £880.

Improvements - £15233.94.

Solicitors fees - £Unknown.

Estate agents fees - £Unknown.

Estimated sale price - £330,000 to £350,000 as per similar sized property sales.

Duration of  living in JRA/MQ’s Me - 20 Nov 1998 to 10 Oct 2008.

Duration of living in JRA/MQ’s Wife - 30 June 1999 to 12 Nov 2007.

Moved into house (Me) 10 Oct 2008 to 28 May 2010.

Moved into house (Wife) 12 Nov 2007 to 28 May 2010.

House vacant until the tenants moved in.

Tenants moved in 16 July 2010 to 24 March 2024 (hypothetical at present).

If anyone here could give me a steer on the amount of CG I'd be looking at, or at which CG calculator to use, or what formula that relates to our situation, we'd be very very grateful. Kelpieboy.

silvercar

I’ll ask the forum team to move this to the tax board, you may find other CTG threads on there that may help.

Alice_Holt

Where were you living when the house was rented out between 2010 and present ?

It is this period of ownership that is may likely to be subject to GCT.


I'd suggest engaging a tax accountant to ensure the calculation is correct. As your CGT situation doesn't appear simple.

Kelpieboy

Hi Alice_Holt,

No, we weren't living in the house from 2010 until it'll be sold.  So to use the CG Manual to my benefit, I'll have 14 years CG to pay.  If you can think of any other help, please drop me a line.  Thank you