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Where Taxpayers and Advisers Meet

Property capital gains tax

m0796
Posts: 4
Joined: Wed Jan 23, 2019 10:58 am

Property capital gains tax

Postby m0796 » Wed Jan 23, 2019 11:13 am

Hi, I am trying to work out if I am able to claim private residence relief. I can't even get my head around how to work it out. I bought a flat in 2004 and lived in it for 8 months while refurbishing it. I have the rented it out since. I want to sell it now, and have worked out that the gain is £106000,which on the hmrc calculator my cgt would be £26000. Can I claim any ppr? And if so appropriately how much would it be? I am a self employed low tax payer. Any help would be much appreciated, thanks.

wamstax
Posts: 1869
Joined: Wed Aug 06, 2008 3:39 pm
Location: Operate Nationally but based in Aberdeen
Contact:

Re: Property capital gains tax

Postby wamstax » Wed Jan 23, 2019 3:00 pm

Living in a property while refurbishing it may not have the quality of permanence needed to qualify for PPR relief. You would need to fully lay out any other property ownership and occupation before during and after your occupation of the to be let property, all your full intentions in relation to each property (including third party notifications of your address changes eg DVLA/ post office/ HMRC / Voters roll etc etc etc and Council tax) and seek professional advice from someone experienced in dealing with that problem.
regards and hope this helps
http://www.wamstaxltd.com
Operates Nationally with competitive costs
and email and phone contact can be obtained from website

m0796
Posts: 4
Joined: Wed Jan 23, 2019 10:58 am

Re: Property capital gains tax

Postby m0796 » Wed Jan 23, 2019 4:00 pm

Hi, thanks for your reply. Do you have to submit all that or is that something you would have to provide only if they decide to look into what was submitted? Thanks.

wamstax
Posts: 1869
Joined: Wed Aug 06, 2008 3:39 pm
Location: Operate Nationally but based in Aberdeen
Contact:

Re: Property capital gains tax

Postby wamstax » Wed Jan 23, 2019 4:53 pm

These are the considerations that you would have to take into account in deciding if you could claim PPR and if so additionally Lettings relief. But yes these are the sort of things that you might have to submit if HMRC decide to take the matter up for Enquiry.
regards and hope this helps
http://www.wamstaxltd.com
Operates Nationally with competitive costs
and email and phone contact can be obtained from website

wamstax
Posts: 1869
Joined: Wed Aug 06, 2008 3:39 pm
Location: Operate Nationally but based in Aberdeen
Contact:

Re: Property capital gains tax

Postby wamstax » Wed Jan 23, 2019 5:07 pm

You might care to look at Tribunal decisions such as http://financeandtax.decisions.tribunals.gov.uk//judgmentfiles/j10729/TC06767.pdf Where you might see what I mean
regards and hope this helps
http://www.wamstaxltd.com
Operates Nationally with competitive costs
and email and phone contact can be obtained from website

bd6759
Posts: 3107
Joined: Sat Feb 01, 2014 3:26 pm

Re: Property capital gains tax

Postby bd6759 » Wed Jan 23, 2019 6:13 pm

Why did you buy the house, and why did you move out?

m0796
Posts: 4
Joined: Wed Jan 23, 2019 10:58 am

Re: Property capital gains tax

Postby m0796 » Thu Jan 24, 2019 9:48 am

Hi, I bought the place as I was renting and the cost was too much, but I also did it with the view to rent it out, as my plan was eventually to move in with my girlfriend which I did. I registered with the council but not drivers council but not drivers licience or bank statements as I knew it was only temporary.

wamstax
Posts: 1869
Joined: Wed Aug 06, 2008 3:39 pm
Location: Operate Nationally but based in Aberdeen
Contact:

Re: Property capital gains tax

Postby wamstax » Thu Jan 24, 2019 9:56 am

My view from what you have said is unfortunately no PPR relief nor lettings relief
regards and hope this helps
http://www.wamstaxltd.com
Operates Nationally with competitive costs
and email and phone contact can be obtained from website

m0796
Posts: 4
Joined: Wed Jan 23, 2019 10:58 am

Re: Property capital gains tax

Postby m0796 » Thu Jan 24, 2019 10:13 am

Ok thanks. The main reason I was hoping to reduce my bill was because I'm worried that my child maintenance for that year is going to rocket, as it's calculated on my net earnings😩 Maybe I should give them a call and ask the question.

wamstax
Posts: 1869
Joined: Wed Aug 06, 2008 3:39 pm
Location: Operate Nationally but based in Aberdeen
Contact:

Re: Property capital gains tax

Postby wamstax » Thu Jan 24, 2019 10:26 am

Capital Gains are not earnings but best to check it out.
regards and hope this helps
http://www.wamstaxltd.com
Operates Nationally with competitive costs
and email and phone contact can be obtained from website


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