Selling BTL Property (formerly home) - how to calculate / minimise CGT

shopping_queen_2

Hi - I wonder if anyone can help please? We purchased a property in 1999 which we lived in until 2011, when we moved out and rented it out. We would like to sell it in the next year or so, but I'm really concerned about the tax implications of doing so. It was worth around £180k when we first rented it out and is now worth around £240k.

Does anyone know how to calculate the possible CGT payable? I understand that the GGT allowance is currently only £3k each, so it feels like we're going to have a really hefty bill. 

Also not sure if there's any way at all to legally minimise our bill. Help! 








 

BarelySentientAI

(Months lived in + 9) divided by Months owned, multiplied by amount of gain.

Jemma01

think you can work it out here
https://www.gov.uk/tax-sell-property/work-out-your-gain

links to this calculator
https://www.tax.service.gov.uk/calculate-your-capital-gains/resident/properties/disposal-date

RAS

It's based on the price you paid in 1999, and calculated based on the number of months you lived in it, the months you rented it out, and a 9 month allowance added to the duration you lived in it.

So it looks like CGT is payable on around half the uplift. You can deduct the cost of capital expenses, so installing central heating but not repairing the boiler.

Bookworm105

read the helpsheet 
HS283 Private Residence Relief (2024) - GOV.UK (www.gov.uk)

lookbook

Jemma01 said:

think you can work it out here
https://www.gov.uk/tax-sell-property/work-out-your-gain

links to this calculator
https://www.tax.service.gov.uk/calculate-your-capital-gains/resident/properties/disposal-date

Very useful. 

chanz4

shopping_queen_2 said:

Hi - I wonder if anyone can help please? We purchased a property in 1999 which we lived in until 2011, when we moved out and rented it out. We would like to sell it in the next year or so, but I'm really concerned about the tax implications of doing so. It was worth around £180k when we first rented it out and is now worth around £240k.

Does anyone know how to calculate the possible CGT payable? I understand that the GGT allowance is currently only £3k each, so it feels like we're going to have a really hefty bill. 

Also not sure if there's any way at all to legally minimise our bill. Help! 








 

worth asking the accountant that does the tax returns for you, they will save you a packet

Bookworm105

chanz4 said:

shopping_queen_2 said:

Hi - I wonder if anyone can help please? We purchased a property in 1999 which we lived in until 2011, when we moved out and rented it out. We would like to sell it in the next year or so, but I'm really concerned about the tax implications of doing so. It was worth around £180k when we first rented it out and is now worth around £240k.

Does anyone know how to calculate the possible CGT payable? I understand that the GGT allowance is currently only £3k each, so it feels like we're going to have a really hefty bill. 

Also not sure if there's any way at all to legally minimise our bill. Help! 

worth asking the accountant that does the tax returns for you, they will save you a packet

for a simple residential property sale they won't save anything. The info already provided explains exactly how to work it out and there is no way to save any tax off that calculation by using an accountant 

silvercar

Bookworm105 said:

chanz4 said:

shopping_queen_2 said:

Hi - I wonder if anyone can help please? We purchased a property in 1999 which we lived in until 2011, when we moved out and rented it out. We would like to sell it in the next year or so, but I'm really concerned about the tax implications of doing so. It was worth around £180k when we first rented it out and is now worth around £240k.

Does anyone know how to calculate the possible CGT payable? I understand that the GGT allowance is currently only £3k each, so it feels like we're going to have a really hefty bill. 

Also not sure if there's any way at all to legally minimise our bill. Help! 

worth asking the accountant that does the tax returns for you, they will save you a packet

for a simple residential property sale they won't save anything. The info already provided explains exactly how to work it out and there is no way to save any tax off that calculation by using an accountant 

They will make sure that you are using all the allowances available and the calculation is correct and made on time. Could save any penalties or interest if nothing else.