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TonyTax
TonyTax, Tax Consultant
Category: Tax
Satisfied Customers: 15917
Experience:  Inc Tax, CGT, Corp Tax, IHT, VAT.
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I bought a house in 2006 I moved out into a rental property

Resolved Question:

I bought a house in 2006
I moved out into a rental property in 2009
I bought and moved into a second property in 2012
I am not going to sell the property I bought in 2006
For how long will I be exempt from CGT?
- last 18 months plus:
i) the date I bought my second home?
ii) the date I started renting in 2009?
Submitted: 3 years ago.
Category: Tax
Expert:  TonyTax replied 3 years ago.

Hi.

 

You will qualify for exemption from CGT for that proportion of the gain covered by the period from when you moved into the property in 2006 until you moved out in 2009 plus that proportion of the gain covered by the last 18 months of ownership. In addition, if you let the property, you will be eligible for letting relief which will be the lesser of :

 

1 £40,000,

 

2 the sum of the gain for the period you lived in the property and the gain for the last 18 months of ownership of the property and

 

3 that part of the letting period gain not covered by the last 18 months of ownership of the property which are exempt in any event.

 

Take a look at HS283 here for more information on the main residence and CGT.

 

I hope this helps but let me know if you have any further questions.

Customer: replied 3 years ago.

Hi - I meant to write 'I am now going to sell' rather than 'not' in my question. Could you please let me know if this changes your response?

Expert:  TonyTax replied 3 years ago.
No, it doesn't change my answer. I realised it was a typing error.
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