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Ash
Ash, Solicitor
Category: Property Law
Satisfied Customers: 10916
Experience:  Solicitor with 5+ years experience
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There, We bought a flat at August 2014, and lived there

Customer Question

Hi there,
We bought a flat at August 2014, and lived there till September 2015 when we needed to let it out in order to buy the existing home in time. We would like to know how the capital gain tax works when we sell the property that is currently let out. Is my understanding correct that if the property is sold within a certain number of years then it won't be eligible for capital gain tax? If so, when will be the best time to sell from tax efficiency's perspective? If we need to pay the capital gain tax, what kind of % would it be?
Many thanks for your response.
Submitted: 1 year ago.
Category: Property Law
Expert:  Ash replied 1 year ago.
Hello my name is ***** ***** I will help you.You are entitled to Capital Gains Tax relief when it is not your main home. You need to live there for 3 years as principle residence in order to get relief. If you then let it out that relief reduces by 1/36 for every month it was a buy to let.The first £11,1000 gain is tax free and then its 18% if you a standard rate tax payer or 28% if higher rate tax payer.Can I clarify anything for you about this today please?Alex
Expert:  Ash replied 1 year ago.
If this answers your question could I invite you rate my answer 3, 4 or 5 starts before you leave today.I am only paid for my work on this question if you rate my answer, using the star system at the top of the screen. Please do not forget! Thank you.
Expert:  Ash replied 1 year ago.
Please bookmark my profile if you wish for future help: http://www.justanswer.co.uk/law/expert-alexwatts/