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TonyTax
TonyTax, Tax Consultant
Category: Tax
Satisfied Customers: 15915
Experience:  Inc Tax, CGT, Corp Tax, IHT, VAT.
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I wish to sell a property which I originally lived in and owned

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I wish to sell a property which I originally lived in and owned i have had a tenant for the last 6 years in the house. I own no other properties but have lived for the last 10 years in my wife's home,do i have a liability to capital gains?
Submitted: 1 year ago.
Category: Tax
Expert:  TonyTax replied 1 year ago.
Hi. If you let me have the following information I'll do some calculations: 1 The month and year you bought the property and what it cost to buy. 2 The month and year you moved out and when it was first let. 3 The value of the property now.
Customer: replied 1 year ago.
1)House bought September 1993, cost to buy £46,000.00
2)Moved out Sept 2005, first let Sept 2009
3)Value of property now £160,00.00
I would re confirm this is my only property and I live with my wife in her house of which I have no financial interest, does this change your calculations?
Expert:  TonyTax replied 1 year ago.
Thanks.
Was the property empty for four years?
Customer: replied 1 year ago.
Yes
Expert:  TonyTax replied 1 year ago.
Thanks. Leave this with me while I do some calculations. It will take a while so please bear with me.
Expert:  TonyTax replied 1 year ago.
Hi again.
A married couple can only have one main residence between them, though you each only had an interest in one. Your home was not your main home when it was being let. As for the vacant period, you were I assume living with your wife at that time so HMRC won't allow you to claim that as a period of occupation by you.
Total period of ownership to, say, April 2016: 272 months
Total period of occupation by you: 145 months
Total period of letting: 80 months
Total period of vacant status: 47 months
Gain: £114,000 (£160,000 - £46,000)
Exempt gain: £68,316 (£114,000 / 272 x 163 (145 + 18)
Letting period gain: £25,985 (£114,000 / 272 x 62 (80 - 18)
Vacant period gain: £19,699 ((114,000 / 272 x 47)
Total non-exempt gain: £45,684 (£25,985 + £19,699)
Letting relief: £25,985 (lesser of £40,000, £68,316 and £25,985)
Taxable gain £19,699
Annual CGT exemption £11,100
Net taxable gain £8,599
CGT 18% or 28% depending on the level of your income in the tax year of disposal.
Take a look here for information on the main residence and CGT:
https://www.gov.uk/government/publications/private-residence-relief-hs283-self-assessment-helpsheet/hs283-private-residence-relief
I hope this helps but let me know if you have any further questions.
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