Private residence relief

mizzbonita

I bought and lived in my flat from 2009 until 2021 when I then rented it out. I’m now selling it and am aware I have to pay CGT. Am
I right  in thinking I will qualify for PRR for the months I occupied the property? Plus an extra 9 months of ownership? It’s still rented so I’m selling it with the tenant in situ, I have a buyer already. 

Any advice would be greatly appreciated 

p00hsticks

Yes, and you can also take buying and selling costs onto account.
There's a calculator on the government website here 
Tax when you sell property: Work out your gain - GOV.UK (www.gov.uk)

mizzbonita

p00hsticks said:

Yes, and you can also take buying and selling costs onto account.
There's a calculator on the government website here 
Tax when you sell property: Work out your gain - GOV.UK (www.gov.uk)

Thank you 

mizzbonita

Also, I pay the basic rate of tax on my income salary and then pay tax on my rental income separately when I complete my tax returns. Would I pay the basic rate of CGT? 

That bit I’m confused about because the rental income would push me into the higher tax bracket but I pay the basic rate on my salary income.  

_Penny_Dreadful

mizzbonita said:

Also, I pay the basic rate of tax on my income salary and then pay tax on my rental income separately when I complete my tax returns. Would I pay the basic rate of CGT? 

That bit I’m confused about because the rental income would push me into the higher tax bracket but I pay the basic rate on my salary income.  

That depends on whether your taxable income plus your taxable gain take you over the higher rate threshold.

Bookworm105

mizzbonita said:

 the rental income would push me into the higher tax bracket but I pay the basic rate on my salary income.  

CGT rate is based on "total income" so if pre tax salary + net taxable rent profit = >£50,270 then you would pay CGT at 24% on the amount of the gain that takes you over the higher rate income tax threshold of 37,700. 
see example here: Working out CGT payable on disposal of house — MoneySavingExpert Forum

mizzbonita

Bookworm105 said:

mizzbonita said:

 the rental income would push me into the higher tax bracket but I pay the basic rate on my salary income.  

CGT rate is based on "total income" so if pre tax salary + net taxable rent profit = >£50,270 then you would pay CGT at 24% on the amount of the gain that takes you over the higher rate income tax threshold of 37,700. 
see example here: Working out CGT payable on disposal of house — MoneySavingExpert Forum

Thanks for confirming, I thought that would be the case.