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TonyTax
TonyTax, Tax Consultant
Category: Tax
Satisfied Customers: 15940
Experience:  Inc Tax, CGT, Corp Tax, IHT, VAT.
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Following my divorce, I have lived with my partner in her house

Resolved Question:

Following my divorce, I have lived with my partner in her house which she wholly owns.
I sold my marital home, and purchased a cottage as an investment, and let it as a holiday let for 6 years. I have never lived in it. It is my only property, and I wholly own it.
If I sold it, would it be liable for CGT?
Many thanks
Submitted: 2 years ago.
Category: Tax
Expert:  TonyTax replied 2 years ago.
Hi.

Assuming that the property was let within the holiday letting rules and the income and expenses were reported to HMRC as such, then if you sell it and make a gain, you may qualify for entrepreneurs' relief which would restrict any CGT charge to 10% as opposed to one of the regular rates of 18% or 28% or a combination thereof depending on the level of your income in the tax year the gain is made. Take a look at HS253 here for more information. The first £11,100 of gains any individual makes in the current tax year will be exempt from CGT.

I hope this helps but let me know if you have any further questions.
Customer: replied 2 years ago.

Thanks, ***** ***** it be exempt as it is my only property?

Expert:  TonyTax replied 2 years ago.
No, because you haven't lived in it and you said it was used as a holiday let. Take a look at HS283 here for information on the main residence and CGT.
TonyTax and other Tax Specialists are ready to help you
Customer: replied 2 years ago.

Thanks - very clear answers - much appreciated.

Expert:  TonyTax replied 2 years ago.
Thanks.