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Where Taxpayers and Advisers Meet

CGT letting relief

Herbs16
Posts:79
Joined:Wed Aug 06, 2008 3:53 pm
CGT letting relief

Postby Herbs16 » Tue Jan 05, 2016 9:50 pm

Hi Forum
Can someone help as to whether I need to pay any CGT?

I disposed of a property in June 14 for £177950, fees etc £2777
Purchased on 5/2/05 for £127000, fees £976

Its owned by myself and wife 50/50 which calculate a gain of £23598

Its been rented the whole time, can I claim the £40k relief to wipe out the gain please??

Many thanks

Peter D
Posts:10668
Joined:Wed Aug 06, 2008 3:37 pm

Re: CGT letting relief

Postby Peter D » Tue Jan 05, 2016 11:11 pm

Letting Relief is only available if the property was at one time your PRR. Read HS273 on the HMRC web site. Regards Peter

Peter D
Posts:10668
Joined:Wed Aug 06, 2008 3:37 pm

Re: CGT letting relief

Postby Peter D » Tue Jan 05, 2016 11:17 pm

Did you pay SDLT on purchase as that is deductible. I also need to know your individual total gross income including the rental profit.
Regards Peter

Herbs16
Posts:79
Joined:Wed Aug 06, 2008 3:53 pm

Re: CGT letting relief

Postby Herbs16 » Fri Jan 08, 2016 10:15 am

many thanks Peter

no SDLT paid

Mr income
salary £9186
Dividends gross £9999
no rental profit

Mrs income
salary £14599
no rental profit

Peter D
Posts:10668
Joined:Wed Aug 06, 2008 3:37 pm

Re: CGT letting relief

Postby Peter D » Fri Jan 08, 2016 10:55 am

Here you are :
Purchase 127,000 05/02/2005
Disposal 177,950 14/06/2014
Total Gain 47,197
PRR 0 0 112
Capital Gain 47,197
Lett Relief 0 Qual Days 0
Net Gain 47,197
CG Allow 22,200
CGT 2,250 0
CGT 2,250 0

CGT Bill 4,500

Regards Peter


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