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Where Taxpayers and Advisers Meet

Lodgers and capital gain tax

refoizudeen
Posts:4
Joined:Tue Mar 16, 2021 6:02 pm
Lodgers and capital gain tax

Postby refoizudeen » Mon Mar 22, 2021 1:00 pm

I got some queries regarding capital gain tax and lodgers

 
I have learned that having more than one lodger at a time will attract CGT

I got my own house which I bought 10 years ago I rented a room to two lodgers (who are couples couples)  for 1 and half years for which I have to pay capital gain tax

In future if I have a single lodger I am not sure if i have to pay cgt for the period of having a single lodger as well.

 

For example I had two lodger for 1.5 years and then I had one lodger for 2 years, do I have to pay CGT for 1.5 years or for all the period of having a lodger which is 3.5 years (1.5+2).

 


 

Thank you

 

pawncob
Posts:5090
Joined:Wed Aug 06, 2008 4:06 pm
Location:West Sussex

Re: Lodgers and capital gain tax

Postby pawncob » Mon Mar 22, 2021 4:29 pm

CGT will only arise if there is a disposal.
See: https://www.gov.uk/hmrc-internal-manuals/capital-gains-manual/cg64702
With a pinch of salt take what I say, but don't exceed your RDA

refoizudeen
Posts:4
Joined:Tue Mar 16, 2021 6:02 pm

Re: Lodgers and capital gain tax

Postby refoizudeen » Tue Mar 23, 2021 5:27 pm

Thank you for the answer I am aware then cgt is payable when the property is sold but my question was do I pay cgt only for the proportion of time I had two lodgers or I have to pay for the other time I had single lodger

For e.g
1.5 years I had two lodgers who are couple
And 2 years I had single lodger

Do I have to add both time (1.5+2 years) which is 3.5 years when calculating CGT tax


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