CGT on 2nd property.

POPPYOSCAR wrote: »

So the fact that it was owned for 30 years lived in for 9 rented for 15 leaving 6 years bears no relevance to the calculations?

because the gain is so large and the ownership period so long the letting relief is going to hit the £40k cap so in essence the 6 years will not impact the letting relief

the only way they would make a difference would be if the 6 years were a lived in period and thus could be added to your private residence relief which, as you know, is not subject to a cap. However, I assume you moved out to a new main residence after 9 years and the occupation of the new main residence is a matter of historic fact so you cannot now say the 6 years were main occupation of the old property as a main residence since it wasn't true.

POPPYOSCAR wrote: »

I just wondered why the question was asked about the other six years and wondered if it was relevant to the calculations which obviously it is not.

if the six years is the sum of the time between the first letting and the last letting when it was not actually tenanted, but was, nonetheless, for those periods being marketed for let, then that can be counted as part of the letting period. However, as per the earlier calculations all that does is raise the letting period to 15/30ths and therefore the 40k cap still takes precedence.

if the 6 years were periods when it was not being marketed for let, and thus was genuinely a "second home", ie capable of being lived in by you but not your main residence at the time then that period is purely liable for CGT with either PPR or LR obviously

if some (all?) of the 6 years was periods when it remained your main home but you were absent from it for temporary reasons then some (3 year max) can be added to the PPR period under the absence rules. Alternatively if the reason for your absence was you were living elsewhere for work related purposes in work provided accommodation then of course those rules would kick in and the PPR period would also be increased.

hence the query about the "6 years"

POPPYOSCAR wrote: »

There is no intention to do that hence the calculation based on actual years lived there.

in reality it should be done in months or days, not in years

POPPYOSCAR wrote: »

Yes to a daughter.

I am taking one third of the full market value i.e. £200,000 .less amount paid £70,000 should it be 1/3 of the price paid as well?

Are you saying the CGT would be based on the market value of £600,000 even though 2/3 are still being retained?

CGT obviously applies to the share being disposed of, so if that is 1/3, then the market value is 600,00 x 1/3 = 200k

the market value applies only on the acquisition or disposal from/to a connected person, so assuming your original purchase was not from a connected person then your purchase price is what you paid x the share % being sold obviously, which appears to be 70k x 1/3 giving you a gross gain of £176,669