april 08 tax on sale of second property

Elmac

I have owned my own flat for 5 years and have rented it out for the last 12 months. I am in the process of purchasing a second property with my partner which should complete in March 08. I am intending to sell my rented out property when the current tenancy finishes in May 08 - will I have to pay CGT on the profit from the sale as will then be deemed to own 2 properties?

fengirl_2

Very unlikely - the period during which you lived in the flat would be exempt and in additon, up to £40k of the remaining gain would be covered by the let main residence exemption.
If you can give us purchase and sale figures, we can be of more help.

CLAPTON

you say owned.... do you also mean lived in as your principal residence?
if you do then the period of residence 4 years plus the last three are exempt from CGT .. so you would have no CGT to pay.

Elmac

Originally purchased for £150k and selling at £270k - I lived in it as principal residence for 4 years and have rented it out for the past year

CLAPTON

no cgt is payable as you will be within the 3 year period.