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taxadvisor.uk
taxadvisor.uk, Chartered Certified Accountant
Category: Tax
Satisfied Customers: 4972
Experience:  FCCA - over 35 years experience as a qualified accountant (UK based Practitioner)
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I have owned my own house in my own name with a mortgage since

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I have owned my own house in my own name with a mortgage since 2002
In April2011 I vacated and rented out to tenants ( I do SA and have paid all tax)
This year I want to sell it and buy a new smaller property and not rent out
Hypothetically how do I stand in the following scenarios:
1. House price valuation 2002 £275000
Hose price valuation 2011 £300000
House price valuation 2014. £ 365000
House price today 2015. £ 410000. Current mortgage outstanding £90000
So if I achieve £410000 and put the whole equity into a new property (probably need a small mortgage of 30000 max this may not even be necessary) is there CGT due?
I am 63 yrs old have deferred state pension and since 2012 have taken on supply teaching sporadically taken
current tax code is continually assessed and lates tax code 388t
SCENARIO 2. All the details above the same with the exception I move back into the house to live and sell in a years time
Same question ?
Submitted: 1 year ago.
Category: Tax
Expert:  taxadvisor.uk replied 1 year ago.
Hello and welcome to the site. Thank you for your question.
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font-family:"Calibri","sans-serif";}Please leave it with me and I will revert with some calculations.. Many thanks
Expert:  taxadvisor.uk replied 1 year ago.
Hello and welcome to the site. Thank you for your question.Please leave it with me and I will revert with some calculations.. Many thanks
Expert:  taxadvisor.uk replied 1 year ago.
Thank you for your patience...
My CGT calculations are based on these assumptions-
- you purchased the property in 2002 and the valuation figure provided by you is the cost price.
- the property has been let continuously since Apr 2011
CGT calculations
Sale of property £410,000
Cost price £275,000
Capital improvements £0
Agents fees, solicitors fee and other costs - say £0
Total cost price £275,000
Gain on sale £135,000
Period of ownership - months 173
Period as main residence - months 108
Private residence relief - months 126
As you would be living in the property upto date of
sale there is no additional relief to cover last 18 mths
of ownership (HS283 - example 9 )
Potential capital gain £135,000
Gain covered by private residence relief
(126/173) x 135,000 £98,324
Gain subject to capital gains tax (135,000-98,324) £36,676
Letting relief - maximum £36,676
This is lower of
- £40,000 per owner £40,000
- Private residence relief £98,324
- Gain on the part of the property that's been let £36,676
Net chargeable gain after letting relief £0
CGT payable - nil -
More information on Private Residence Relief can be found here
https://www.gov.uk/government/publications/private-residence-relief-hs283-self-assessment-helpsheet/hs283-private-residence-relief
Scenarios 1 and 2 result in NO CGT payable.
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.
taxadvisor.uk and other Tax Specialists are ready to help you
Expert:  taxadvisor.uk replied 1 year ago.
I thank you for accepting my answer.
Best wishes.

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