Capital Gains on sole home

Kimig_2

I hope this is the right forum - please forgive me if it isn't!
I bought my council house with a huge discount, (because I'd been council tenant since Methuselah was a boy!) in 1993. I bought it for £18,500 and the valuation was £45,000. Since May 2005, I have been staying with friends abroad. To protect myself, and provide some income, I rented the house to a "charitable" housing association for a three year period, which expires on May 8th this year. I am now sure that I don't want to live in UK any more, and will sell the UK house, towards the end of April. The amount of rent paid by the association, and the interest-only mortgage cost, and various other repair costs , are almost equal. If I sell, will I be liable to CGT, and if so, an approximate cost? Grateful for all and any assistance

CLAPTON

if principle you are liable to CGT

however as it was your principal residence for a time you are allowed relief for the period you actually lived there plus the last three years plus letting relief

in practice this means you will pay no CGT

Kimig_2

Thankyou Clapton - I have been quite worried about this! Maybe I can sleep now

Cook_County

I assume you are investigating the tax position in the country where you live as the rent and the gain may well be taxable there.

Kimig_2

Hello Cook-county - thanks for the warning. I'm pretty sure we don't have CGT in Northern Cyprus, and as I said,there is almost no rent profit. And the authorities here are busy chasing very large foreign investors to worry about little people like me.

fengirl_2

If you are not resident in the UK when you sell, you would not be lilable to CGT anyway.

Cook_County

fengirl - you are not always on the same wavelength when you read my comments.

There is certainly CGT in Northern Cyrpus. The gain is reportable & taxable there unless the poster plans on evading tax - which itself could lead to criminal prosecution.