Selling a bungalow with a 20K income from lodgers

silvercar

Markmywords said:

Keep_pedalling said:

Be aware that you may have created a CGT liability by renting out 3 rooms for 10 years.

https://www.thisismoney.co.uk/money/mortgageshome/article-9241823/Have-lodgers-left-liable-capital-gains-tax-want-sell.html

is the cgt applicable because it more than 1 lodger?

Yes, it is considered a letting business rather than falling under the rent-a-room scheme.

see 3.2 example 1 “…. . . If you’ve a single lodger, the rooms occupied by the lodger qualify for relief.
If you have more than one lodger, or if you let part or all your home at any time in your period of ownership, the let parts may not qualify for Private Residence Relief. …..”

here: https://www.gov.uk/government/publications/private-residence-relief-hs283-self-assessment-helpsheet/hs283-private-residence-relief-2024#who-qualifies-for-relief

Keep_pedalling

Markmywords said:

Keep_pedalling said:

Be aware that you may have created a CGT liability by renting out 3 rooms for 10 years.

https://www.thisismoney.co.uk/money/mortgageshome/article-9241823/Have-lodgers-left-liable-capital-gains-tax-want-sell.html

is the cgt applicable because it more than 1 lodger?

Base on the info in that link, yes.

mybestattempt

silvercar said:

Markmywords said:

Keep_pedalling said:

Be aware that you may have created a CGT liability by renting out 3 rooms for 10 years.

https://www.thisismoney.co.uk/money/mortgageshome/article-9241823/Have-lodgers-left-liable-capital-gains-tax-want-sell.html

is the cgt applicable because it more than 1 lodger?

Yes, it is considered a letting business rather than falling under the rent-a-room scheme.

CGT aside having one lodger is a "lettings business" whether or not the rent a room scheme applies.

It's the same "lettings business" if £7400 rent for a room in a tax year increases to £7600 the following tax year. However, the rent a room scheme could only apply to the earlier tax year.

silvercar

mybestattempt said:

silvercar said:

Markmywords said:

Keep_pedalling said:

Be aware that you may have created a CGT liability by renting out 3 rooms for 10 years.

https://www.thisismoney.co.uk/money/mortgageshome/article-9241823/Have-lodgers-left-liable-capital-gains-tax-want-sell.html

is the cgt applicable because it more than 1 lodger?

Yes, it is considered a letting business rather than falling under the rent-a-room scheme.

CGT aside having one lodger is a "lettings business" whether or not the rent a room scheme applies.

It's the same "lettings business" if £7400 rent for a room in a tax year increases to £7600 the following tax year. However, the rent a room scheme could only apply to the earlier tax year.

We are digressing, but I accept your point, though even in the latter year the rent a room schem can be used as a tax allowance.

mybestattempt

silvercar said:

mybestattempt said:

silvercar said:

Markmywords said:

Keep_pedalling said:

Be aware that you may have created a CGT liability by renting out 3 rooms for 10 years.

https://www.thisismoney.co.uk/money/mortgageshome/article-9241823/Have-lodgers-left-liable-capital-gains-tax-want-sell.html

is the cgt applicable because it more than 1 lodger?

Yes, it is considered a letting business rather than falling under the rent-a-room scheme.

CGT aside having one lodger is a "lettings business" whether or not the rent a room scheme applies.

It's the same "lettings business" if £7400 rent for a room in a tax year increases to £7600 the following tax year. However, the rent a room scheme could only apply to the earlier tax year.

We are digressing, but I accept your point, though even in the latter year the rent a room schem can be used as a tax allowance.

Thank you for acknowledging my point on the "lettings business" issue.

I agree that the rent a room scheme is an option where rent is over £7500 and apologise for being wrong on that point.

FlorayG

OP has gone quiet because probably didn't even know any of this...