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Where Taxpayers and Advisers Meet

Property disposal CGT

Posts: 30
Joined: Wed Aug 06, 2008 3:48 pm

Property disposal CGT

Postby masteroats » Mon Apr 29, 2019 2:19 pm


I have owned a small flat since Aug 03. I was working abroad for a long period and the property was rented out from Aug 07 to Jul 17, when I returned to live there. Since purchase, the value of the property has increased from approximately £115k to £220k

Im currently in the process of remortgaging with a view to selling in about 2 years. However, I have just become aware of the potential change to the CGT lettings relief in April 2020. From my untrained eye this means I'll be faced with a tax liability of £11k if I sell after the changes come into effect.

I understand that there are other small details could affect the final figure (e.g. home improvements) but none will come near to the loss of the £40k allowance.

Is my basic understanding correct?

My next step will be to get professional paid advice but have written to a few local advisors, none of which have responded.


Posts: 338
Joined: Wed Aug 02, 2017 9:09 pm

Re: Property disposal CGT

Postby darthblingbling » Mon Apr 29, 2019 2:42 pm

As you returned to live in the property after a period working abroad, then I would suggest that letting relief may not even apply as the whole of the gain will be covered by PPR.

Broadly speaking the gap in which you were overseas working will be treated as deemed occupancy.

Obviously get professional advise and supply all the facts to confirm this.

Posts: 27
Joined: Wed Aug 06, 2008 4:10 pm

Re: Property disposal CGT

Postby billypiper » Mon Apr 29, 2019 3:46 pm

Did you have the property as your main residence before you rented it out?

Where you required to work abroad as part on your employment contract?

Posts: 30
Joined: Wed Aug 06, 2008 3:48 pm

Re: Property disposal CGT

Postby masteroats » Mon Apr 29, 2019 6:44 pm

Thank you Darth for your response. That confirms I definitely need professional advice before taking a decision.

@ Dennis - I have emailed you. Thank you.

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