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CGT and Letting Relief

edited 30 November -1 at 1:00AM in Cutting Tax
51 replies 11K views
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  • 00ec2500ec25
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    ritzD wrote: »
    We are joint owners
    so the gain is split into your respective shares so that each person is taxed individually depending on their circumstances (ie one may be a higher rate taxpayer whilst the other isn't)

    PRR, LR and PA are claimed by each owner
    based on your figures with an assumed 100k each neither of you will have a taxable gain after all relief is applied.
    ritzD wrote: »
    We brought our house on Nov 30th 2006 - total costs* £300,000

    *cost of house, stamp duty, legal costs, improvements (double glazing, new bathroom, damproofing so it’s sell-able, kitchen costs, new doors – hope these are all allowable?)
    none of those costs are classed as capital improvements, they are all ordinary repairs. Depending on when the work was done you could/should have claimed them on your rental profits tax return. You cannot claim them against your capital gain.

    PS where did you bring the house from? Was it expensive to move it :rotfl:
  • pjcox2005pjcox2005 Forumite
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    sean07687 wrote: »
    Thank you saajan_12, I don't have that information to hand I'm afraid but no I have not rented to anyone else, it has been a bolt hole for me when I needed one.... Thanks though I will try to find these matters out.



    May be too late for Sean but wouldn't he get 4 years PPR relief due to working away from home for work (even with it in the UK)?


    Also, if he were to move back in for a period then would it mean that he can use the 3 year exemption for any reason? Does that still exist?


    You'd then still have the final 18 months qualifying as well which between them could substantially reduce the gain.


    Not my area hence asking the questions just in case it's useful for anyone else stumbling across the thread.
  • 00ec2500ec25
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    pjcox2005 wrote: »
    May be too late for Sean but wouldn't he get 4 years PPR relief due to working away from home for work (even with it in the UK)?

    "moving for work" means the employer requires you to relocate or you get sacked.

    I rather think Sean mean he chose to move to London to find better work for himself, not because he was compelled to move there by his employer

    the first makes it exempt, the second does not


    Also, if he were to move back in for a period then would it mean that he can use the 3 year exemption for any reason? Does that still exist?

    yes that exists, read HS283

    You'd then still have the final 18 months qualifying as well which between them could substantially reduce the gain.


    Not my area hence asking the questions just in case it's useful for anyone else stumbling across the thread.
    https://www.gov.uk/government/publications/private-residence-relief-hs283-self-assessment-helpsheet
  • SystemSystem
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    Have been reading al the posts in this thread and was hoping someone can clarify one thing. Is PRR and LR only claimable if you have lived in a second property.?
    We own a property abroad but have never lived in it.
  • 00ec2500ec25
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    Pam17 wrote: »
    Have been reading al the posts in this thread and was hoping someone can clarify one thing. Is PRR and LR only claimable if you have lived in a second property.?
    We own a property abroad but have never lived in it.
    it has nothing at all to do with how many properties you own.

    It is relief potentially available for the place you are selling, if that place (on its own) meets the conditions
  • silvercarsilvercar Forumite, Board Guide
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    sean07687 wrote: »
    purdyoaten2

    Could of, would of, should of...... AAAAAAAAArgh,

    Why do you post that? It's so rude.

    I asked a question and explained at the time that I know nothing of financial matters, it seems to me that this website can often be a forum for people to put down other people simply because they do not have knowledge, I thought the point of Forms was to help people, who are in need of advice, not be damn sarcastic to them, I explained I knew very little about that subject and I also asked people to be 'kind' because of this. I wanted HELP, not sarcasm...

    As a new user you may not have picked up all the quirks of this forum. The comment that you considered rude is in purdeyoaten2's signature. As such it appears at the bottom of all his posts. Consider it a general comment on people's grammar, rather than a dig at you personally.

    You have received great help on this thread, that I'm sure you appreciate. I hope you stick around.
    I'm a Board Guide on the Debate House Prices & the Economy, House Buying, Renting & Selling, Mortgages and Endowments, In My Home incl DIY, Overseas Holidays & Student boards.
    I volunteer to help get your forum questions answered and keep the forum running smoothly.
    Board guides are not moderators and don't read every post. If you spot an abusive or illegal post then please report it to [email protected]. Any views are mine and not the official line of moneysavingexpert.com.
  • SystemSystem
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    Sorry I should explain our primary residence (house) is in the UK. We have a second property in Berlin which has only ever been rented out to tenants. We declare that rental income in the UK and Germany.
    Having never lived in the German property I was asking if I was right in assuming that neither PRR or LR would be claimable by us when completing our CGT form
  • 00ec2500ec25
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    Pam17 wrote: »
    Sorry I should explain our primary residence (house) is in the UK. We have a second property in Berlin which has only ever been rented out to tenants. We declare that rental income in the UK and Germany.
    Having never lived in the German property I was asking if I was right in assuming that neither PRR or LR would be claimable by us when completing our CGT form
    that has already been answered in post #2 ...
    2. Claim Private Residence Relief (PRR) amount
    If the owner lived in the property as their only/main home they are entitled to claim PRR for that period.

    If there is no claim to PRR then you cannot claim LR.
  • Thanks for your help guys!! haha yeh moving that house on the back of my van was costly! guess I should've said "purchased" lol

    Anyway with these costs that you've said are not capital improvements, ....these are the costs we are incurring currently. We have just moved back in to the property to do all this work eg. double glazing, Damproofing, fit new kitchen, bathroom etc...we submit our self assessment every jan, so how would we go about doing it this year if we've sold the property by the end of this year. Can we claim for these costs? Also for most part of this year we received no rent from our tenants, so we are looking into going to small claims court to get the rent arrears paid back (apparently this could take upto a year we've been told). Would this have any impact on reducing our CGT?
  • Njdp1Njdp1 Forumite
    2 posts
    Hi, I'm trying to work out if I need to pay CGT on a property I jointly own with my wife. We bought the property in July 2013 for £327,000 and lived in the property till October 2015 when we moved to Australia. We then rented the property from November 2015 till March 2017. The property was then empty till we sold it in July 2017 for $425,000. We had no other Uk income whilst overseas.
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