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JGM
JGM, Solicitor
Category: Family Law
Satisfied Customers: 11453
Experience:  30 years as a practising solicitor. Partner in own firm.
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This is about capital gains:

Resolved Question:

This is about capital gains: I owned my home , then got married I then also bought my husbands family home as it was being repossessed. I then had to rent out my original home and live in my husbands family home. We then divorced he now lives in the family home alone although the mortgage is still in my name as he cannot get a mirtgage - he pays the money into my account but it is his home - nothing to do with me. I am now selling my original home that I had let out as I cannot afford to live there I am hoping I will not be affected by capital gains ? Thank you for your help
I bought the my original home for 189000 and will be selling it for 210000 I lived in it for 1 year and let it for 6 it is now empty.
Submitted: 3 years ago.
Category: Family Law
Expert:  JGM replied 3 years ago.
Thank you for your question.

If you went back to live in your own home or live between two homes at the moment you would not be affected and would get full private residents relief as you may be able to nominate this house as being your main residence.

However, from what you say, you only lived there for a year and let it out for the rest of the time so private resident relief would not apply and you would normally be liable for capital gains tax on the gain in value. However you would qualify for letting relief which may in your case wipe out any CGT.

The maximum amount of Letting Relief due is the lower of:

£40,000
the amount of Private Residence Relief due
the amount of gain you've made on the let part of the property

As your gain is less than £40000 you should get relief on the whole gain.

Here is the HMRC link for you:

http://www.hmrc.gov.uk/cgt/property/sell-own-home.htm

I hope this helps. Please leave a positive response so that I am credited for my time.
Customer: replied 3 years ago.
Hi thanks for reply, should I discuss this with the solicitor I am instructing for the sale- - will he be able to deal with this or do I contact hmcr or wait for them to contact me? Thanks
Expert:  JGM replied 3 years ago.
You can ask the solicitor's advice certainly but he or she will just sell the house and send you a cheque for the profit. The sale will have to be recorded in your tax return for this financial year so it will really be your accountant that should help you complete your tax return if you don't want to do it yourself.
Customer: replied 3 years ago.
Ok thanks - I don't usually do tax returns or have an accountant ?!
Expert:  JGM replied 3 years ago.
Yes, but because of this transaction strictly speaking you'll have to register for self assessment and complete one now.
Customer: replied 3 years ago.
Ok that's great thanks for your help
Expert:  JGM replied 3 years ago.
You're welcome. Don't forget to leave positive feedback on the system so that I am credited for my time.
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