CGT on house sale

[TaxToTheMax]

Hi there,

My first post on here, so please forgive if i'm a bit naive and wet behind the 'taxation ears'


I bought my house in 2003 and on the verge of selling it now in 2020. During this time i lived at property until Q4 2015 and the rented it until Q4 2019, since then it has been left empty while renovating for selling. This is the only property i own, which has increased in price by about 40,000 over my ownership. Since moving out in 2015 i've been living with my partner in her house. While living with her i have been paying council tax and sharing the bills/mortgage (although the house & mortgage are in her name). We are not married, if that alters anything in terms of laws / exclusions

My questions are:
1) Am i exempt from CGT on my house sale? Technically i only have 1 house, as my partner's house is theirs in name & mortgage - so from a tax perspective am i considered a 'renter/lodger' and thus would not qualify for CGT?

2) In relation to point 1), what sort of evidence would be required to confirm CGT exemption?

3) If i do pay CGT, i've heard that certain things can be included for deduction (eg - solicitors fees, etc). Does this include both purchasing & selling? Would this also include any renovation work i did getting the house ready for sale (eg - kitchen refurb), or indeed any remedial work done as a result of new buyer's surveyor findings?

4) For any deductions in point 3), presumably evidence such as invoices / online transactions (shown on bank website) would suffice?


I'm sure this has probably been covered elsewhere, so if anyone knows the link please provide that if easier

Many thanks for your help
TTTM

[AGoodman]

1. No but you can claim PPR relief for the period to Q4 2015 and the last 9 months of ownership. You will need to count the days and work it out as a fraction of your total ownership time. Multiply this fraction (I presume it will be about 3/4) by your gain and that is the relief. The balance (i.e. about 1/4 of the gain - say £10,000) will not be relieved but you can deduct your annual allowance of £12,300.

You may therefore find that you are not left with a gain after the deduction of PPR relief and the annual exemption.

If there is a small gain left, it's taxable at 18% or 28% depending whether you're a basic rate or higher rate taxpayer.

2. No need to submit any evidence unless HMRC ask for it.

3. Yes, estate agents and solicitors fees for both ways are deductible. SDLT for buying the property is deductible. Capital improvements are deductible but repairs aren't. Others will know better than me about a new kitchen - I suspect it may only count as capital work if the kitchen you installed was clearly better than the original, even when the original was in good condition.

4. See 2: if HMRC do ask for evidence, use anything you can lay your hands on. Invoices best. Solicitors will have provided completion statements showing costs of buying/selling.