Have Tax Questions? Ask a Tax Expert for Answers ASAP
again.I'm assuming you owned the property solely.If you include the first month as a month of occupation by you which you can do since you moved in within 12 months of buying the property, you lived in it months and let the property months out of a total period of ownership of 175 months.The exempt gain is £362,829 (£415,000 /175 x 153). The non-exempt gain is £52,171 (£415,000 / 175 x 22). Letting relief of £40,000 reduces the non-exempt gain to £12,171 and the annual CGT exemption of £10,900 reduces it further to leave you with a net taxable gain of £1,271.CGT would be at 18% or 28% or a combination of the two rates depending on the level of your income in 2013/14. The worst it can be is £355.88 (28%).I hope this helps but let me know if you have any further questions.