Capital Gains on sale of property

BadAtMaths1

 I owned a house outright and my partner (we are not yet married nor in civil partnership) owns her house (purchased in 2005 for 150K) with small mortgage remaining.

 At the start of 2023 I sold my house and moved into my partners house.

 Later in 2023, I (solely) bought a new house, and we both moved into that.

 My partner then rented her house out and has been doing for the almost 10 months.

 Due to a change in plans, we now intend to sell her house (current valuation 250k) early next year.

 Wondering what the CGT implications are for her when she comes to sell (given that she lived in it for approx 19 years and then rented it out for 1 year).

 Thanks in advance

eskbanker

https://www.gov.uk/tax-sell-property is where to start, and follow the links from there for further detail - it sounds like any CGT will be minimal if she's lived in it for most of the ownership period, thanks to Private Residence Relief, which will cover the vast majority of the gain.

Keep_pedalling

She will get primary residence release for the period she lived there plus the last 9 month of ownership, so it is highly likely that there will be no CGT to pay once selling costs and her annual allowance have been taken into account. What was the purchase price?

eskbanker

Keep_pedalling said:

What was the purchase price?

From OP:  

BadAtMaths1 said:

my partner (we are not yet married nor in civil partnership) owns her house (purchased in 2005 for 150K)

Bookworm105

mortgage is irrelevant. Assuming it sells for 250k she is facing a 100k gain, of which all bar a few months between her moving out and it selling will get full relief from CGT under the private residence relief (PRR) rule 

she needs to calculate the relief % using months:
a) ownership period: purchase month 2005 to sale month 2024 
b) PRR period: purchase month 2005 to month 2023 moved out plus "final" 9 months of ownership

b / a = % 
% x 100k gain = amount of relief available 
100k gain - relief - CGT allowance (3k) = ? (probably a few £) 
CGT payable = ? x tax rate = probably a few pennies (or zero) 

silvercar

Bookworm105 said:

mortgage is irrelevant. Assuming it sells for 250k she is facing a 100k gain, of which all bar a few months between her moving out and it selling will get full relief from CGT under the private residence relief (PRR) rule 

she needs to calculate the relief % using months:
a) ownership period: purchase month 2005 to sale month 2024 
b) PRR period: purchase month 2005 to month 2023 moved out plus "final" 9 months of ownership

b / a = % 
% x 100k gain = amount of relief available 
100k gain - relief - CGT allowance (3k) = ? (probably a few £) 
CGT payable = ? x tax rate = probably a few pennies (or zero) 

Also deduct buying and selling costs.

BadAtMaths1

Thanks for your comments everyone, its much appreciated.