How JustAnswer Works:

  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.

Ask taxadvisor.uk Your Own Question

taxadvisor.uk
taxadvisor.uk, Chartered Certified Accountant
Category: Tax
Satisfied Customers: 4803
Experience:  FCCA - over 35 years experience as a qualified accountant (UK based Practitioner)
54961312
Type Your Tax Question Here...
taxadvisor.uk is online now

how long do I have to live in a property as my main home to

Resolved Question:

how long do I have to live in a property as my main home to negate capital gains tax in the uk£
Submitted: 1 year ago.
Category: Tax
Expert:  taxadvisor.uk replied 1 year ago.
Hello and welcome to the site. Thank you for your question.

In general terms, you get private residence relief for the period you make the property your main residence. If it is your main residence and you move out , you get addtional relief for another 18 months. So as an example.
bought property in Jan 2013
Main residence - Jan 2013 to Dec 2014
Moved out to another property - Jan 2015
Sold first property in Dec 2016.

Your first property gian would be covered by private residence relief for (Jan 2013-Dec2014 and fianl 18 months of ownership. so in total 42 months out of 48 months. More information on this can be found here

https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/323679/hs283.pdf



I hope this is helpful and answers your question.
taxadvisor.uk, Chartered Certified Accountant
Category: Tax
Satisfied Customers: 4803
Experience: FCCA - over 35 years experience as a qualified accountant (UK based Practitioner)
taxadvisor.uk and other Tax Specialists are ready to help you
Expert:  taxadvisor.uk replied 1 year ago.
a couple of spelling mistakes .. apologies.

Your first property gain would be covered by private residence relief for (Jan 2013-Dec2014 and final 18 months of ownership.

Many thanks
Customer: replied 1 year ago.

took owner ship of property sept 2013 rented out for 2 years will be making it my main home may need to sell due to redundancy

Expert:  taxadvisor.uk replied 1 year ago.
Thank you for your reply.

Provided you move into the property and make it your main residence, then all period it is your main residence plus a final 18 months would be covered by private residnec relief and also you will gt a futher relief called letting relief. This is all explained in HS283.

In order to avail this you have to move in and live in that property as main residence. I would guess a period of atleast 18-24 months to mitigate CGT.

I hope this is helpful.
Customer: replied 1 year ago.

rather than a guess can you give a more definite period of time needed as main residence

Expert:  taxadvisor.uk replied 1 year ago.
Thank you for your reply.

There are factors to be taken into account in calculating the capital gain and then reliefs

Here is an example...
say you keep the property until Sep 2017..total period of ownership 49 months
let period (Sep 2013 to Apr 2015) = 20 months
main residence (May 2015 to Sep 2017) = 29 months

Your estimated gain = £70,000

Private residence relief (29/49 x 70,000) = £41,429
Gain chargeable to CGT (70,000-41,429) = £28,571.

You would get letting relief to a maximum of £28,571

No CGT payable

say you keep the property until Sep 2016..total period of ownership 37 months
let period (Sep 2013 to Apr 2015) = 20 months
main residence (May 2015 to Sep 2016) = 17 months

Your estimated gain = £70,000

Private residence relief (17/37 x 70,000) = £32,162
Gain chargeable to CGT (70,000-32,162) = £37,838

You would get letting relief to a maximum of £32,162 and the balance £5,676 will be chargeable to CGT.

You would get gains allowance against this and there will be no CGT payable.

I have given you two examples.

I hope this is helpful
taxadvisor.uk, Chartered Certified Accountant
Category: Tax
Satisfied Customers: 4803
Experience: FCCA - over 35 years experience as a qualified accountant (UK based Practitioner)
taxadvisor.uk and other Tax Specialists are ready to help you
Customer: replied 1 year ago.

thanx

Expert:  taxadvisor.uk replied 1 year ago.
You are welcome.
Customer: replied 1 year ago.

I took ownership in 2013 along side my brother in law in half shares, then in Dec 2014 my husband bought him out, so currently we own it in half shares and share the income, so there for, is the capital gains from Dec14 when ownership changed till we happen to sell it or still the September date? also on the change of ownership .would we if we sell be both able to use our capital gains allowance for the year separately ie 2x10,500=2,1000 or only once

Expert:  taxadvisor.uk replied 1 year ago.
Your gain will be from when you took ownership (Sep 2013). Your hiusband's gain will be from Dec 2014 when he bought out your brother-in-law.

You will both be able to use your capital gains allowance.

I hope this is helpful.

What Customers are Saying:

 
 
 
  • Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C.
< Previous | Next >
  • Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C.
  • This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!! Alex
  • Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult. GP
  • I couldn't be more satisfied! This is the site I will always come to when I need a second opinion. Justin
  • Just let me say that this encounter has been entirely professional and most helpful. I liked that I could ask additional questions and get answered in a very short turn around. Esther
  • Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C.
  • This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!! Alex
 
 
 

Meet The Experts:

 
 
 
  • Sam

    Sam

    Accountant

    Satisfied Customers:

    7088
    26 HMRC expertise, PAYE, Self Assessment ,Residency, Rental Income, Capital Gains, CIS ask for Sam Tax
< Previous | Next >
  • http://ww2.justanswer.com/uploads/TA/Tax Expert/2013-8-21_231010_sam.64x64.jpg Sam's Avatar

    Sam

    Accountant

    Satisfied Customers:

    7088
    26 HMRC expertise, PAYE, Self Assessment ,Residency, Rental Income, Capital Gains, CIS ask for Sam Tax
  • http://ww2.justanswer.com/uploads/BI/bigduckontax/2013-8-12_222058_1.64x64.jpg bigduckontax's Avatar

    bigduckontax

    Accountant

    Satisfied Customers:

    2333
    FCCA FCMA CGMA ACIS
  • http://ww2.justanswer.com/uploads/TA/TaxRobin/2013-8-28_16186_femalebusinessprofessionalbinderhand11038485.64x64.jpg TaxRobin's Avatar

    TaxRobin

    Tax Consultant

    Satisfied Customers:

    524
    International tax
  • /img/opt/shirt.png taxadvisor.uk's Avatar

    taxadvisor.uk

    Chartered Certified Accountant

    Satisfied Customers:

    2845
    FCCA - over 35 years experience as a qualified accountant (UK based Practitioner)
  • http://ww2.justanswer.com/uploads/MS/MsAM/2012-6-9_16426_anna.64x64.jpeg Anna's Avatar

    Anna

    Teacher, writer, biologist

    Satisfied Customers:

    270
    Great research skills, variety of work experiences, teaching experience.
  • http://ww2.justanswer.com/uploads/PD/pdheslin/2012-6-6_232056_pambig.64x64.jpg pdheslin's Avatar

    pdheslin

    Consultant

    Satisfied Customers:

    51
    20+ years of internet site creation and search engine optimization. Dozens of search tools at my disposal.