Capital Gains Tax on Property

Skinnylatte

Hi, I hope someone can answer this tax question.

I’ve owned a house for 30 years. For 24 years I lived in it, then for the last 6 it’s been wholly used as an Airbnb, and I had a second home. I’ve now sold the original home.
Do I pay capital gains tax
a) On the difference between the price I paid and the price I sold it for.
b) The difference between the price is was valued at 6 years ago and the price I sold it for.

I’ve tried googling this, but can;t find a definitive answer.

Please tell me it’s B!!

p00hsticks

It's neither. 

The gain is the difference between the selling price and purchase price, less buying and selling costs (and allowable improvements if yo uhave any). 

But you only pay CGT on the proportion for which it was not your main residence - so roughly 6/30, although it needs to be expressed in months. 

and you potentially have a CGT allowance of £3k when you sell.

There is a CGT calculator on gov.uk which it may be helpful for you to work through. 
Tax when you sell property: Work out your gain - GOV.UK (www.gov.uk)

You say you have now 'sold' the home - if you mean that you have actually completed, rather than just agreed a sale note that if there is any CGT due you only have 60 days after completion to report and pay to HMRC 

[Deleted User]

Don’t forget to add an additional nine months private residence relief as the house was the main residence at some point e.g. 

Gain £100000. 

 Owned 360 months 
Main residence 60 months 

Private residence relief (60 + 9) / 360 x £100000