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taxadvisor.uk, Chartered Certified Accountant
Category: Tax
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Experience:  FCCA - over 35 years experience as a qualified accountant (UK based Practitioner)
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My wife and I moved out of our London property in September

Resolved Question:

My wife and I moved out of our London property in September 2012 to move abroad. Our property has been rented to her brother since then on a casual basis - the rent just covers the mortgage & bills. My wife and I are now seeking a divorce and so are looking to sell the property. Estate agents have estimated that the property should approximately make a £200,000 profit. Any advice on the Capital Gains tax situation on this would be greatly appreciated.
Submitted: 3 years ago.
Category: Tax
Expert:  taxadvisor.uk replied 3 years ago.
Hello and welcome to the site. Thank you for your question.

Please advise
- if the London property was your only and main residence upto Sep 2012?
- how long have you owned the property?

Many thanks
Customer: replied 3 years ago.

Thank you for the swift response.


 


- The London property was our only and main residence until Sept 2012


- We have owned the property since Aug 2006


 


Thanks


 

Expert:  taxadvisor.uk replied 3 years ago.
John, thank you for your prompt reply..

Lets say the property is sold in Aug 2014.. you would have owned it for 8 years (96 months)

The period to Sep 2012 is covered by private residence relief.
The period Oct 2012 to Mar 2014 is covered by additional relief available (final 18 months of ownership provided the property was main residence at some point during the period of ownership) - upto 5 Apr 2014 the final period was 36 months.

You are left with period from Apr 2014...

As the property was your main residence and it was also let for a period, there is a further relief available called letting relief. This ould wipe off any gain left after adjusting for the two reliefs aforementioned.

You will have no CGT payable on sale of the property.

More information on private residence relief is covered here

http://www.hmrc.gov.uk/helpsheets/hs283.pdf

I hope this is helpful and answers your question.

If you have any other questions, please ask me before you rate my service – I’ll be happy to respond.





Customer: replied 3 years ago.

Phew, that's good news! Thank you very much for the quick response. Much appreciated.

Expert:  taxadvisor.uk replied 3 years ago.
John, thank for your reply and good words..

I hope this is helpful.

If you are happy and there are no more issues I will appreciate if you would kindly rate the service I provided to ensure I get credited for it.

taxadvisor.uk and 3 other Tax Specialists are ready to help you
Expert:  taxadvisor.uk replied 3 years ago.
I thank you for accepting my answer.

Best wishes

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