CGT

[diamond2]

HI there

Can anyone advise me please? I currently rent out my house, with the use of a BTL mortgage of £240k, and I have bought a flat with some of the profit from the house, and a smallish mortgage. The flat is now my permanent residence. I had intended moving back to my house one day, but as time goes by this is now less likely, and I feel that as the rules are shortly changing for Landlords I may be better of selling the property. Can anyone advise me how much CGT I will have to pay please? I have owned the house for 29 years and have rented it out for the last 3 years.

Thanks you in advance.

Kind regards

Amanda.

[SteLacca]

There isn't enough information in your question.

When did you move out of the house? How much do you expect it to sell for? What were the associated costs of purchase (and expected associated costs of sale). Have any improvements been carried out on the property during ownership, and if so, what was their nature and cost?

[diamond2]

Hi again

As mentioned previously I moved out 3 years ago and I have rented it out ever since. The BTL mortgage valued it at £320k 3 years ago - they are currently selling for about £380k. (I originally bought it back in 1989 for £93500). I don't want exact figures, (yes, money has obviously been spent on it), just a rough idea. Am I looking at paying CGT for the difference in the value of the property 3 years ago and what I could sell it for now, (roughly £60k)? If so what percentage would I pay in CGT please?

Many thanks,

Amanda

[maths]

If you lived in the property apart from the last 3 years there will be no CGT charge on any gain made on sale.

[diamond2]

Thank you so much for this. Can you tell me when CGT would start to kick in please?

Many thanks.

[SteLacca]

Under current rules, assuming that you are UK resident, the CGT will be payable by 31 January following the end of the tax year in which you sell.

However, HMG is currently conducting a consultation to accelerate the Return and payment of capital gains to bring it into charge and payable within 30 days.

If you are non-resident in the UK, you are already within the 30 day deadline.