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Where Taxpayers and Advisers Meet

CGT on let property

Posts: 1
Joined: Thu Feb 14, 2019 12:12 am

CGT on let property

Postby gazells » Thu Feb 14, 2019 12:35 am

I bought a dwelling for my own residence in 1987, after divorce, lived there until 2014 when I moved in with a new lady as co-habitees. It is her house exclusively by registered title. I retain exclusive my house registered title , although the house has been let via Short Term Tenancy since the beginning of 2015. It seems that there might be a possibility soon of selling my house including large garden to be demolished and redeveloped to several new houses. If this goes through my sale price will be approx the equivalent of 21 times my original purchase price. I am have always been a basic rate tax payer. As the value of this house will increase substantially due to its development potential, would I be liable for CGT on a straight line time scale , ie 5/32nds of the new value or a different formula taking into account the sudden uplift in value, or some other? The value when I moved in with my lady was approx. 10times original purchase.

Posts: 4389
Joined: Wed Aug 06, 2008 4:06 pm
Location: West Sussex

Re: CGT on let property

Postby pawncob » Thu Feb 14, 2019 5:45 pm

The period from 1987 to 2014 is exempt (plus 18 months) and the gain from 2014 to sale is subject to letting relief, so basically it is time apportioned, but with a few additions.
With a pinch of salt take what I say, but don't exceed your RDA

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