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Sam
Sam, Accountant
Category: Tax
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Experience:  26 HMRC expertise, PAYE, Self Assessment ,Residency, Rental Income, Capital Gains, CIS ask for Sam Tax
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I moved into a council flat in Nov 1986. I purchases it in

Resolved Question:

I moved into a council flat in Nov 1986. I purchases it in July 2002 and moved out in Jan 2006 I have been renting it out since that date. If I sell now will I be liable for capital gains tax or could I continue to let it for 2 more years ??
Submitted: 3 years ago.
Category: Tax
Expert:  Sam replied 3 years ago.
Hi

Thanks for your question, my name is XXXXX XXXXX I am one of the UK tax experts here on Just Answer.

Yes you will be liable to capital gains tax, as you will be selling a property, that. although was once your main home, has not been for more than 36 months - so this triggers a capital gain

Thanks

Sam
Customer: replied 3 years ago.

Isnt there an allowance if you lived in the property for a long time???

Expert:  Sam replied 3 years ago.

Hi You get credit for the time you lived there known as private residence relief - and this also covers the last 36 months of ownership (due to change to last 18 months from 06/04/2014) and also will qualify for private lettings relief, as this was your main home AND you have let it out to tenants (and I assume declared all rental income to HMRC) but a capital gain will still arise.

 

You only lived here for 4 years (from the date of ownership to when you moved out) and then have the period from Jan 2006 to when you sell, which is 8 years when it was NOT your main residence!!!

 

And whilst 3/1.5 years taken off these 8 years for private residence relief, and any remaining gain can be reduced by the private lettings relief, and the first £10,900 of any gain is exempt (this is to increase to £11,100 from 06/04/2014) you are still likely to have a capital gain to consider.

 

Thanks Sam

Sam and other Tax Specialists are ready to help you
Expert:  Sam replied 3 years ago.
Hi Kathy

I have noted you have rated me as poor service, may I ask what else you required?
As I can only offer you the correct answer ..... not one that you may want to hear - which I am sure you can appreciate.

Thanks

Sam

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