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Where Taxpayers and Advisers Meet

CGT liability

temple
Posts:12
Joined:Wed Aug 12, 2015 11:36 am
CGT liability

Postby temple » Sun Jul 21, 2019 5:33 pm

My wife and I bought our property for £51,000 in December 1990 and lived in it until 2006

In 2006 we let it out until 2016, then in 2016 we moved back in.

In effect we lived in the property for 18 years and rented it out for 10 years

We are now selling the property for £150,000, so there is a capital gain of some £99,000

We are aware that we are each entitled to the yearly £12,000 CGT exemption, and also to further CGT exemption allowances relating to the years we lived in the property, and to letting allowance, but are unclear on the amount of these latter two allowances. Any guidance on calculating the two additional allowances would be greatly appreciated.

bd6759
Posts:4262
Joined:Sat Feb 01, 2014 3:26 pm

Re: CGT liability

Postby bd6759 » Sun Jul 21, 2019 7:36 pm

It is unlikely you will have a CGT liability.

Briefly: Owned for 29 years. Unoccupied by you for 10 years. At least 4 of these years will be exempt (maybe more if you left the property for an allowable reason such as emloyment). The leaves 6 years which could give rise to a gain. 6/29ths is roughly £20K. Letting relief will reduce that to Zero. Even if it didn't, its covered by annual exemption.

Jerome_Lane
Posts:25
Joined:Mon Jul 22, 2019 10:13 am
Location:Camberley, Surrey
Contact:

Re: CGT liability

Postby Jerome_Lane » Wed Jul 24, 2019 9:21 am

It looks unlikely that you will have a CGT liability. Please contact me if you would like a formal computation and advice on this.
Jerome Lane
Tax Advisor
jerome.lane@stewartco.co.uk
Stewart&Co.
Chartered Accountants
Telephone: 01276 61203


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