CGT on a rented primary residence owned for 2 years

[661305]

Hi everyone,

I'm not very well educated on taxation and everything I've learnt is from reading the gov.uk website so apologies if i make any mistakes!

I'm trying to work out if i'm liable to CGT in the following scenario and wondering if someone could confirm anything or help me:

* I earn around £35k a year (don't think this is relevant but included in case)
* I've never owned or bought a property, i rent a flat with my girlfriend
* I then buy a property on 01/03/2016 for £45,000
* I move to and live in this property as my main residence (i still rent the flat with my girlfriend but no longer live there(its complicated))
* I spend £11,000 renovating the property to a good standard
* I live in the property until 01/12/2016 (9 months)
* I then let out the property and move back in with my girlfriend
* I decide to sell the property on 01/03/2018 for lets say £80,000 (owned for 24 months)

Would i be entitled to "private residence relief" and/or "letting relief" ?

From my brief understanding i would get "private residence relief" for the time i lived in the property (9 months) plus the last 18 months i owned it, which out-weighs the 24 months i owned it.

Would this "full" "private residence/letting relief" go towards writing off any capital gains?

Would i be liable to any capital gains tax?

Again, apologies if i'm getting things totally wrong as i'm having to try and educate myself based on the gov.uk website!


Thanks in advance for any help

Dan

[Peter D]

Was it really your private residence. Did you move in lock stock and barrel. Did you move all you addresses to the new home. DVLA HMRC, bank accounts, etc, etc. Regards Peter

[661305]

Hi and thanks for the reply!

I moved in and lived there permanently for the period. Ate, slept and socialised from there.

Bank account address was moved there, registered to vote from there.

Dvla and hmrc are registered at my parents house. (Not the flat or the new house)

I'm guessing you're asking as I would have to prove I lived there? I couldn't see anything on the gov website about moving registered addresses.

Thanks again, dan

[Peter D]

IF HMRC accept your claim to PPR then you have no CGT to pay in 2018. There will be no LR as it was let in the last 18 months of ownership. The claim to enhancements (£11,000) depends on what they are. However even with the claim for 11,000 there still would be no CGT in 2018. Regards Peter

[661305]

Hi Roger,

Thanks for the replies!

What would stop HMRC from accepting the claim to PPR? How would I find out if I would be accepted? Is there something to fill in before hand or do I just sell up, and mention on my next self assessment that I've sold a house and believe that I'm not liable to CGT?

What are allowable as claimable enhancements?

Sorry for all the questions, as I say I'm totally new to this and still learning, all help much appreciated