CGT On My Buy-to-let

raymo · Postby **raymo** » Wed Apr 02, 2003 4:11 am

I have owned my flat for the last 4+ years, the first 3.75 yrs I was living there. Since Oct 2001 it has been rented out as I moved into my husbands property. I have just remortgage for another 2yrs ('til Apr '05 not a buy-to-let mortgage). The flat is soley in my name, and my husband is the sole owner of his flat (our present residence). We are planning on buying a house in 2yrs time however I am concerned about paying GCT on my property. How can I avoid this. I have heard that if you live in the property for the 6mths prior to selling then you are exempt from paying GCT, is this true.
All Help gratefully received.

demetris · Postby **demetris** » Wed Apr 02, 2003 1:37 pm

If you sell your flat at a gain, the gain will be exempt from CGT for the period you lived in it plus the last three years of ownership, even if it was not your main residence.

For any period that you were letting it other than the last 3 years of ownership, there will be a lettings exemption and if there is any chargeable gain , that will be reduced by any non-business asset taper relief and annual CGT exemption amount.

I hope this helps.

Demetris Savva BA FCCA
http://www.tax-accounting-london.info