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Where Taxpayers and Advisers Meet

CGT and reliefs on sale of former home

greenjersey
Posts: 18
Joined: Thu Nov 17, 2011 8:01 pm

CGT and reliefs on sale of former home

Postby greenjersey » Tue Apr 09, 2019 1:10 pm

Hi, I bought a property in April 2011 for £250,000 and lived in it for 26 months. I then let the property until I sold it after total of 85 months ownership for £310,000. In the unlikely event that I understand the rules correctly I think I add 18 months to the 26 to calculate the Private Residence Relief? I presume I then deduct the 18 months from the let period to calculate the Letting Relief. If this is correct I don't believe I will have a CGtax liability but we then come to the next question, How the hell do I report this calculation to HMRC? Form SA108 seems short of boxes! Box 4 "disposal proceeds", Do I deduct all the selling costs from that figure? Then Box 5, I presume I add stamp duty and all the other costs to the purchase price? I then put LET in Box 8 but where do I show the PRR and Lettings Relief I have calculated?
As you can see I am struggling, any help greatly appreciated. Thanks.

maths
Posts: 7580
Joined: Wed Aug 06, 2008 3:25 pm

Re: CGT and reliefs on sale of former home

Postby maths » Tue Apr 09, 2019 2:07 pm

All is set out in the Notes found at:

www.gov.uk/government/publications/self-assessment-capital-gains-summary-sa108

The Notes include computation pages to be filled in and indicates relevant costs etc.

On your figures there is no CGT to pay:

Gain 60,000 (ignoring costs)

Private residence relief: 44/85 x 60,000 = 31,000
Lettings relief: 41/85 x 60,000 = 29,000

Gain: Zero.

greenjersey
Posts: 18
Joined: Thu Nov 17, 2011 8:01 pm

Re: CGT and reliefs on sale of former home

Postby greenjersey » Sun Apr 14, 2019 6:20 pm

Hi, Thanks Maths, that is a great help. I have now done the calculation taking account of the costs of acquisition and disposal amounting to £8911 and I am still left with a net gain of nil. Is that what you would expect?
Thanks again.


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