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Ash
Ash, Solicitor
Category: Property Law
Satisfied Customers: 10915
Experience:  Solicitor with 5+ years experience
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I am obliged to sell my flat to local housing association

Resolved Question:

I am obliged to sell my flat to local housing association due to regeneration they are under taking as I have not lived in my flat lat couple of years. I have bought the flat in 1996 and lived in it for15years and only rented it out last 5 years as I had to look after elderly relative.
As a non resident leaseholder I have only option to sell,i have decided to do do. With the sale of the flat and mortgage repayment I as m left with the considerable profit from which I plan to buy new flat. Am I supposed to pay capital gains tax on money I made from the sale of the flat?
Submitted: 5 months ago.
Category: Property Law
Expert:  Ash replied 5 months ago.

Hello my name is ***** ***** I will help you with this.

In the agreement does it say you are obliged to sell it to THEM please?
Alex

Customer: replied 5 months ago.
no it doesn't.it gives me option to buy from them when they build new flats which will be a lot more expensive and I can't afford without taking morgage out.its not Cpo stage and I want to sell now rather than wait for Cpo stage
Expert:  Ash replied 5 months ago.

Then no, you don't have to sell it to them. If the block is being redeveloped there may be a clause that allows them to do this.

But by law you don't have to sell it to them.

Can I clairfy anything for you about this today please?

Alex

Customer: replied 5 months ago.
I wanted to know in fact do I have to pay capital gains tax as I am selling it to them.of no fault of my own. I only have option of selling to them as if I sell to anyone else I have to make them aware that regeneration will take place and it will make sale dificult. my enquiry is only about capital gains tax
Customer: replied 5 months ago.
Hi Alex,
sorry forgot to add that's the only property I own and I lived in it 15years and let it out last5years due to change in personal circumstances. I am sorry if I am confusing you as my enquiry was dolely about capital gains tax.
thank you
vesna
Expert:  Ash replied 5 months ago.

If it is your primary home then no - you dont have to pay capital gains tax.

Can I clarify anything for you?
Alex

Customer: replied 5 months ago.
its my only home,althought I wasn't living in it as I gave up my job and flat rent was my only source of income.does not living in it and renting it out changes anything aboyt CGT?
I just want to clarify that.
thanks
Vesna
Expert:  Ash replied 5 months ago.

Do you have any other house?

Customer: replied 5 months ago.
no I don't own any other house.I do stay with a friend of mine rent free.I look after her flat as she travels a lot.the flat I am selling was my first ever to buy.
thank you
vesna
Expert:  Ash replied 5 months ago.

If you had lived in the property you are about to sell for the whole of the time you owned it, there would be no CGT bill because of what HM Revenue & Customs calls “private residence relief” which makes the whole of any gain made on your main home tax-free. (There are, however, exceptions if you had a particularly large garden, used the property for business purposes or sold off part of the property.) The fact that you are renting somewhere to live rather than owning a second home has no bearing on whether you are liable for CGT.
Sadly therefore you are liable for the gain and you cant claim this back, even though you are forced to sell it.

I am sorry if this is not the answer you want and certainly not the one I want to give you, but I have a duty to be honest.

Can I clarify anything for you about this today please?
Alex

Ash, Solicitor
Category: Property Law
Satisfied Customers: 10915
Experience: Solicitor with 5+ years experience
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