CGT on rental property

[Hel4444]

Hi,

I need to complete my SA for the tax year 2016-17, during which I sold a property.

I bought the property with my ex-boyfriend for £160k in 2007. We split up and I bought his half of the house for £75k in 2009, as the value had dropped. I lived in it till 2013, rented the house out for 3 years and then sold in 2016 for £170k.

Both the purchase in 2007 and the 50% buyout in 2009 were registered with the Land Registry.

My question is for calculating the relief, what figure do i use for the purchase price? Either the original purchase price of £160k or it seems more correct to use 50% of £160k plus the £75k, so £155k?

Thank you for your help,
Helen

[Peter D]

You use the actual figure so £155,000. However using rough dates there will be no CGT due to PPR and Letting Relief.

The figures look like this :

Purchase 155,000 14/06/2007
Disposal 170,000 14/06/2016
Total Gain 15,000
PRR 12,500 90 108
Capital Gain 2,500
Lett Relief 2,501 Qual Days 548
Net Gain -1
CG Allow 11,100
CGT 0 0
CGT 0 0

CGT Bill 0

Regards Peter

[Hel4444]

That's great, thank you Peter! I didn't think I'd be due to pay any CGT, but I was concerned in case I could only use 50% of the original purchase!

Thank you again,
Helen