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Alice H
Alice H, Solicitor
Category: Property Law
Satisfied Customers: 2850
Experience:  Partner in national law firm with 20+ years legal experience
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I bought a property in 1996 in Islington, London for £130,000. I

Resolved Question:

I bought a property in 1996 in Islington, London for £130,000.
I lived in it until 2002 but kept it on vacant until 2010.
In 2010 I rented it out and have done until today.

I am thinking about selling it this year.

The flats value is now £675,000.

Are you able to indicate to me how much my CGT would be if I sold.
Submitted: 3 years ago.
Category: Property Law
Expert:  Alice H replied 3 years ago.

Alex Hughes :

Hello and welcome to Just Answer. My name is XXXXX XXXXX I'm happy to help with your question today.

Alex Hughes :

What rate of tax do you pay?

Customer:

40%

Alex Hughes :

Any capital losses in the current financial year?

Alex Hughes :

And what is your income?

Customer:

No capital losses.

Customer:

Income is £58,000 + £7,500 guaranteed bonus

Alex Hughes :

Thanks.

Alex Hughes :

Potentially the CGT is likely to be around £149,250.

Alex Hughes :

Based on sale price of £675,000 less purchase price £130,000 less allowance £11,000 balance at 28%.

Customer:

I thought the period I owned it without renting it out was CGT free

Alex Hughes :

This will need to be double checked as the figure may vary depending on other factors - but is simple terms your liability could be around £149,250

Alex Hughes :

No, CGT is payable on the gain in value as opposed to use. You might be sble to claim som tax relief while the property was empty.

Alice H and other Property Law Specialists are ready to help you
Customer: replied 3 years ago.

Something that confuses me....is this taking into account the final 18 months relief.....the private residence relief, the maximum letting relief as set by the HMRC per owner (that I thought was £40k), the letting relief

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