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Where Taxpayers and Advisers Meet

am i liable for CGT

lisawang
Posts: 5
Joined: Tue Dec 18, 2018 12:00 pm

am i liable for CGT

Postby lisawang » Tue Dec 18, 2018 12:05 pm

I bought a property in 2012 and rented out because I have to rent a property to live in another city for the sake of study and work.
Now I sold my property with a profit.
Am I liable for paying CGT? and how to calculate?
Thanks
Lisa

pawncob
Posts: 4280
Joined: Wed Aug 06, 2008 4:06 pm
Location: West Sussex

Re: am i liable for CGT

Postby pawncob » Wed Dec 19, 2018 1:40 pm

Yes.
But there are reliefs if it was ever your principal private residence as well as being let.
https://www.gov.uk/capital-gains-tax
With a pinch of salt take what I say, but don't exceed your RDA

lisawang
Posts: 5
Joined: Tue Dec 18, 2018 12:00 pm

Re: am i liable for CGT

Postby lisawang » Wed Dec 19, 2018 2:58 pm

thank you very much for your reply.
do you know how long I should live there to avoid paying CGT?

AdamS93
Posts: 220
Joined: Tue Sep 26, 2017 6:28 pm

Re: am i liable for CGT

Postby AdamS93 » Wed Dec 19, 2018 3:57 pm

You may be saved by s226(8) TCGA 1992 but this seems very unlikely given your situation.

As you have already sold the property, there is nothing you can do retrospectively.

The best advice I would give is to arrange a meeting with a local accountant.

lisawang
Posts: 5
Joined: Tue Dec 18, 2018 12:00 pm

Re: am i liable for CGT

Postby lisawang » Wed Dec 19, 2018 4:09 pm

thank you for your reply.
I have not sold my property yet.
it is already empty since this November.
so do I have to live there to avoid paying CGT and for how long?

pawncob
Posts: 4280
Joined: Wed Aug 06, 2008 4:06 pm
Location: West Sussex

Re: am i liable for CGT

Postby pawncob » Wed Dec 19, 2018 4:39 pm

You have to live there before you let it.
With a pinch of salt take what I say, but don't exceed your RDA

AdamS93
Posts: 220
Joined: Tue Sep 26, 2017 6:28 pm

Re: am i liable for CGT

Postby AdamS93 » Wed Dec 19, 2018 6:29 pm

thank you for your reply.
I have not sold my property yet.
it is already empty since this November.
so do I have to live there to avoid paying CGT and for how long?
According to your first post you have sold it.

You will always have CGT to consider when you sell it, regardless if you move in to the property now. You will apportion the gain between periods of occupation and non-occupation. The periods of non-occupation will be taxable.

It is complicated, you need an accountant or spend a few hours doing your own research.

lisawang
Posts: 5
Joined: Tue Dec 18, 2018 12:00 pm

Re: am i liable for CGT

Postby lisawang » Thu Dec 20, 2018 5:05 pm

the property is a leasehold.
so I pay service charges( building insurance included) , do I entitled to claim this as costs and expenses from CGT?

AGoodman
Posts: 772
Joined: Fri May 16, 2014 3:47 pm

Re: am i liable for CGT

Postby AGoodman » Thu Dec 20, 2018 5:19 pm

No - these are not capital expenses

lisawang
Posts: 5
Joined: Tue Dec 18, 2018 12:00 pm

Re: am i liable for CGT

Postby lisawang » Fri Dec 21, 2018 11:18 am

Thanks
If I decide not to sell now and move back to live, how long should I live there before I sell it and avoid to pay CGT?
For I don't have to sell it now and I can live there myself as my only resident accommodation.
According to my search, someone said it requires 36 months in total.


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