This site uses cookies. By continuing to browse the site you are agreeing to our use of cookies. To find out more about cookies on this website and how to delete cookies, see our Cookie Policy.
Analytics

Tools which collect anonymous data to enable us to see how visitors use our site and how it performs. We use this to improve our products, services and user experience.

Essential

Tools that enable essential services and functionality, including identity verification, service continuity and site security.

Where Taxpayers and Advisers Meet

Flats conversion to house

anthony m
Posts:7
Joined:Fri Nov 28, 2014 10:34 am
Flats conversion to house

Postby anthony m » Sun Jan 29, 2017 1:30 pm

We have owned two flats, a leasehold and freehold in what was once a four bedroom house. It is now the only house in the street in flats. We hope to convert it back to a house and move into it as what then would be our only residence when we have sold our other house. The freehold flat has been rented out since 1996 when we bought it and we have never lived in it. We lived in the leasehold flat from 1992, (the date we bought it) to 2004 and have rented it out since 2004. If we restore the house to its original form, live in it as our only property will it ever be free of capital gains tax if we should sell it. If not how would the liability be calculated? Any help on this would be much appreciated.

Leasehold flat bought for 50k now worth 100k
Freehold flat bought for 30k now worth 90k

Both of us retired paying basic rate tax.

Return to “Capital Gains Tax, CGT”