my house selling after moving in with g/f :renting and future CGT?

chewit

morning,
I am about to move in with my better half and despite trying to sell my house we aren't getting viewings (thanks all you doomsayers!!!) so we are thinking of renting my place out
if we do what is the CGT status?
i've owned for 2 years and we know about the full relief for 2 years (although this might be three????)
if we sold miy house after 3 years what would our/my CGT status be and what is all this **7$$@@' about taper relief and "18% not 40 %"
have looked at hmrc but to be honest its a bit of a minefield and I only have 2 degrees so its above my head!!!????

thanks

silvercar

You would be exempt from CGT for the time it was your home and the last 3 years of ownership. So if say you lived in it for 2 yrs then rented it out for 4 yrs, 3 of those 4 would be exempt so you would be exempt for 5 of the 6 years, so only pay CGT on one sixth of the total gain.

You can also take off buying and selling costs (eg legal and estate agents) and any improvements to the property.

You would also be eligible for letting relief which is worth upto another 40k off the gain. You also have a CGT allowance of (currently) £9,600.

If you still have any CGT after that lot, you pay tax at 18%.

windowwindow

Just wondering, in this situation what the implications for your mortgage is.

I have a C&G mortgage, and wonder if they would let me move out. Would I have to change the type of mortgage to a buy to let?

Would I need to have rental income equal to 100% (or more) of the mortgage? (I think I'd still need to pay £100 each month to cover it)

Thanks for any advice,

W.

moneysavinmonkey

If you house has had not a single viewing it is more likely that you have priced it a little too optimistically and less to do with sensible people claiming that houses are overpriced.