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

Capital Gains Tax

easymark
Posts: 1
Joined: Mon Jan 23, 2017 9:39 am

Capital Gains Tax

Postby easymark » Mon Jan 23, 2017 9:42 am

I was renting out my private residence (the only property I own) to friends ( who were also paying the council tax there) whilst I was living in rented accommodation for several years. I now wish to sell my property. Am I likely to incur Capital Gains Tax or should I declare that I have been renting the property before I sell?

AmanSood
Posts: 215
Joined: Mon Jan 09, 2017 4:12 pm

Re: Capital Gains Tax

Postby AmanSood » Wed Feb 08, 2017 10:02 am

you should declare you rental income irrespective of whether or not you sell your property. The capital gains tax treatment will depend on how long you lived in the property, why you rented it out etc but likely there may be some CGT to pay on disposal.
Advising on UK employment, expatriate and personal taxes
aman.sood@e-taxconsulting.com.
+44 (0) 207 846 0155

Ian McTernan CTA
Posts: 1232
Joined: Wed Aug 06, 2008 3:02 pm
Location: Bedford
Contact:

Re: Capital Gains Tax

Postby Ian McTernan CTA » Fri Feb 10, 2017 4:41 pm

Most people still don't realise that the SDLT return contains your name and address and this goes to HMRC, who seek to link it to a tax file.,,at which point they may decide to take a look and find out you failed to declare income.

You will incur a liability to capital gains tax on the sale. Whether PPR relief is available and how much will depend on the length of time you lived there as well as other reliefs.

You need to declare the rental income voluntarily NOW. There is a way of doing this which makes it reasonably straightforward but I would recommend you engage professional help with this and also with calculating your CGT liability.
McTernan Associates Ltd
Chartered Tax Advisers
Bedford
Email through link on website:
http://www.imcternan.com


Return to “Property Taxation”