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Where Taxpayers and Advisers Meet

CGT on a property that is the only property I own, though it has been let out

Posts: 1
Joined: Fri Oct 12, 2018 9:17 am

CGT on a property that is the only property I own, though it has been let out

Postby kea1 » Fri Oct 12, 2018 9:38 am

Just trying to get some advice regarding CGT on a property I am considering selling.
I bought a property 10 years ago, and took 8 months to renovate it (it was not habitable e.g. no kitchen at the time of purchase) while I was renting elsewhere, with the intention of then moving in and it being my residence.
However at that point my situation changed, and I ended up working elsewhere in the British Isles, and so let out the property, and it is still currently let to the same original tenant. All of the time during my absence I rented for my own accommodation from other private landlords.
I have now moved back to the area, and am again renting just down the road from my own house, as I didn't want to kick out a long standing tenant at that point.
That house is not suitable for my needs now, and I would like to sell it, and buy a new property in the area to become my permanent residence.

Therefore, the house is my only property- it is not a second property although it has been let out. It has however not been my permanent residence at all.

In the 10 years it has gone up in value, but if I sell it and have to pay CGT I then think I won't be able to afford a similar property in the same area.

Any advice or thoughts regarding this will be much appreciated- is CGT still applicable in this situation, or possible ways forward to reduce a tax bill which will prevent me from buying an alternative property!

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Re: CGT on a property that is the only property I own, though it has been let out

Postby wamstax » Fri Oct 12, 2018 1:15 pm

Unfortunately as the property has never been your main residence you will not qualify for main residence relief or the supplementary letting relief. Additionally in case you think it possible to make it your main residence I would have to explain that occupation while you are selling or intending to sell would not have the necessary quality of permanence to qualify as a main residence.
Equally while the property was uninhabitable it could not be your main residence for Cgt relief
regards and hope this helps
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