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Where Taxpayers and Advisers Meet

CGT advice on main residence (let for period)

matt20uk
Posts:7
Joined:Mon Jul 25, 2011 12:22 pm
CGT advice on main residence (let for period)

Postby matt20uk » Wed Mar 08, 2017 2:24 pm

Hello

I would really appreciate some CGT advice on the sale of my property please.

Here are the key facts as I see them:

• 31/05/2007 – net purchase price after stamp duty & legal fees: £157,702
• 19/09/2016 – net selling price after estate agents fees & legal fees: £216,916
• Gain = £59,212
• The property is jointly owned with my wife. We did not own any other properties during the period 31/05/2007 to 19/09/2016
• The property was let between 09/11/2013 and 09/03/2016
• I was on an overseas secondment with my employer between November 2013 and November 2015 (hence the reason why the property was let)
• We did not move back in to the property after the tenancy ended as it was put on the market for sale. We stayed with family during this time

Does anyone have any thoughts on whether we lose full Private Residence Relief due to the period of absence highlighted above?
If so, can I please have a CGT calc. Hopefully there won’t be any gain after PRR, letting relief and our annual allowances.

Many thanks
Matt

someone
Posts:691
Joined:Mon Feb 13, 2017 10:09 am

Re: CGT advice on main residence (let for period)

Postby someone » Wed Mar 08, 2017 2:35 pm

I suspect you will have no tax to pay assuming it was your PPR for the period from purchase to letting.

Doing this in my head so might have got the numbers wrong but:

6.5 years PPR plus last 1.5 years = 8 years PPR

Total time owned is 9.3 years. (which I'll call 10)

80% PRR.

60K gain - reduces to 12K taxable and 48K PRR (20% not PPR)

Jointly owned means 6K each which is less than the 10K threshold.

I think you would also each get 24K RLR (I think this is capped at the PRR amount in your case) if you've got other gains using up your allowance.

(assumes 50/50 ownership)

But if someone else comes along and says I've got this completely wrong then they're probably right!

Peter D
Posts:10668
Joined:Wed Aug 06, 2008 3:37 pm

Re: CGT advice on main residence (let for period)

Postby Peter D » Wed Mar 08, 2017 2:42 pm

There is no CGT liability but you need to report the sale to HMRC. Regards Peter

Peter D
Posts:10668
Joined:Wed Aug 06, 2008 3:37 pm

Re: CGT advice on main residence (let for period)

Postby Peter D » Wed Mar 08, 2017 2:43 pm

Purchase 157,702 31/05/2007
Disposal 216,916 19/09/2016
Total Gain 59,214
PRR 50,679 95 111
Capital Gain 8,535
Lett Relief 5,281 Qual Days 303
Net Gain 3,255
CG Allow 22,200
CGT 0 0
CGT 0 0

CGT Bill 0


Regards Peter

matt20uk
Posts:7
Joined:Mon Jul 25, 2011 12:22 pm

Re: CGT advice on main residence (let for period)

Postby matt20uk » Wed Mar 08, 2017 4:37 pm

Many thanks for the quick replies.

Peter - can I ask how you calculated 303 qualifying days for letting relief?

Peter D
Posts:10668
Joined:Wed Aug 06, 2008 3:37 pm

Re: CGT advice on main residence (let for period)

Postby Peter D » Wed Mar 08, 2017 7:01 pm

The total days let was 851. But you can not claim LR in the last 18 months of ownership as they are treated as PPR. Regards Peter


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