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Where Taxpayers and Advisers Meet

Do I need to pay CGT

Ash
Posts:2
Joined:Wed Aug 06, 2008 3:03 pm

Postby Ash » Wed May 28, 2003 3:19 am

Due to a change in circumstances the flat I originally bought to live in has been rented out for the last 18months the first 3months all bills were in my name. I have been living in rented accomodation elsewhere. I bought the property with my father although all mortgage details are in my name (he lent me a large part of the deposit). I am now looking to sell this place to buy somewhere for me to move into, my Father wants to buy me out, but I am interested to know if I am going to be paying CGT. Are there anyways such as moveing back to my place for a while which will prevent me needing to pay CGT?

thanks

Ash

Ash
Posts:2
Joined:Wed Aug 06, 2008 3:03 pm

Postby Ash » Wed May 28, 2003 3:55 am

Just to add some detail to my question:

The flat was purchased in Sept 2001, and I started to rent it out in Feb 2002 (all bills prior to this are in my name). The purchase price was £140k and I expect I will get around £180-185k when I sell it. I have been living in rented accomodation since Feb 2002.

Now if I understand correctly the last 3 years of ownership of this my sole property are deemed as 'residence' so I will not be liable to CGT, is this the case?

Many thanks for your help,

Ash

Ian McTernan CTA
Posts:1232
Joined:Wed Aug 06, 2008 3:02 pm
Location:Bedford
Contact:

Postby Ian McTernan CTA » Wed May 28, 2003 8:50 am

Short answer is you should not be liable to CGT as the principal private residence relief should apply as the property was purchased to be your PPR, and you did not own another property during the period of ownership. You will need to tick the box on your Tax Return regarding disposal of PPR.

I am assuming you actually lived in it at some point prior to renting it out, otherwise the Revenue may need a little convincing to allow PPR.

Regards.

Ian McTernan CTA
Chartered Tax Adviser
McTernan Associates
50 New Bond Street
London
W1S 1RD
ian@imcternan.com
McTernan Associates Ltd
Chartered Tax Advisers
Bedford
Email through link on website:
http://www.imcternan.com


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