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Where Taxpayers and Advisers Meet

CGT liability

limoges
Posts: 20
Joined: Sun Feb 13, 2011 12:51 am

CGT liability

Postby limoges » Fri Mar 06, 2020 4:18 pm

I hold a POA registered with the court of protection for an dementia suffering elderly relative. I am planning to sell her present property and purchase sheltered housing that offers very close support.

Some years ago her present property was let out for around 8 years but her total period of personal residence is 17 years, and I have been advised that this has cancelled out any possible risk of a CGT liability arising from the years when the property was rented out

The funds from the present sale would be needed in their entirety to cover the cost of the sheltered housing and any shortfall would be disastrous. I wondered if there was any means of obtaining a firm assurance that no CGT is due prior to agreeing a sale.

AGoodman
Posts: 1029
Joined: Fri May 16, 2014 3:47 pm

Re: CGT liability

Postby AGoodman » Fri Mar 06, 2020 4:56 pm

The rules are fairly clear. HMRC are unlikely to give you any clearance but you can ask an accountant or post the dates/values on here.

maths
Posts: 7894
Joined: Wed Aug 06, 2008 3:25 pm

Re: CGT liability

Postby maths » Fri Mar 06, 2020 4:59 pm

Figures needed. But suspect if owned for 25 years in total, 8 let out and 17 occupied any gain not more than circa 150k should avoid a CGT charge.


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