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Sam
Sam, Accountant
Category: Tax
Satisfied Customers: 13938
Experience:  26 HMRC expertise, PAYE, Self Assessment ,Residency, Rental Income, Capital Gains, CIS ask for Sam Tax
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I bought a new home with my partner 2 months before i disposed of my old home in th

Resolved Question:

Hi,
I bought a new home with my partner 2 months before i disposed of my old home in the 2014/2015 tax year. This meant my previous home was empty for 2 months it was never let at all. There was a small gain.
I understand this is covered by the 18 month rule for CGT. I don't currently do a Tax Return do I have to do anything or is it all covered under the relief automatically?
Alex
Submitted: 2 years ago.
Category: Tax
Expert:  Sam replied 2 years ago.
Hi Alex
Thanks for your question
You are quite right that as the time that lapsed between moving out of the original property and its sale, was less than 18 months - that the gain made on the sale of the property remains covered by the private residence relief rules.
You need do nothing at all - ONLY if the property had been sold after the 18 month tie frame wold you need to alert HMRC of the sale and any arising again, so as less, this is an automatic situation with no action required by you to HMRC
Thanks
Sam
Sam and other Tax Specialists are ready to help you
Customer: replied 2 years ago.
Thanks this is great and quick response, I phoned HMRC today to ask this question they got confused and said a tax technician will call me in week I just say when they call me i have asked a tax professional who have confirmed my thoughts i don't have to do anything.
Expert:  Sam replied 2 years ago.
Hi
Thanks for your response
Thats right - sadly the staff on the helplines are not trained in tax but follow a "Script" from the customer advise guides
Here is the link for the capital gains manual
http://www.hmrc.gov.uk/manuals/cgmanual/cg64985.htm
and the bit that applies to you is
For disposals on or after 6 April 2014 the final period of ownership that qualifies for relief is reduced to 18 months, unless the disposal is by disabled persons or persons in care homes etc. and TCGA92/S225E applies see CG64986. (it states reduced as it used to be 3 years rather than 18 months)
So at least you then have the legislation from which to quote
Let me know if I can be of any further assistance, or it would be appreciated if you could rate the level of service I have provided you with
Thanks and have a great weekend
Sam
Customer: replied 2 years ago.
Hi Sam,I gave you the top rating.
I got my HMRC call back but missed the call and they gave me HMRC direct number to get back hold of them which means I would have to go through the whole thing again now I know the answer I wont. I assume I can just ignore it now as I was just asking advice and no change will be made to my tax?Alex
Expert:  Sam replied 2 years ago.
Hi Alex

Thanks for the rating - its very much appreciated.

The answer will remain the same and unless you wished to just double check to verify the advise I have given which is already backed up by the HMRC Capital Gain manual, then you can indeed not bother calling them back

Thanks

Sam