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 TonyTax Your Own Question

TonyTax
TonyTax, Tax Consultant
Category: Tax
Satisfied Customers: 15846
Experience:  Inc Tax, CGT, Corp Tax, IHT, VAT.
13905389
Type Your Tax Question Here...
TonyTax is online now

I wish to sell a property which I originally lived in and owned

Resolved Question:

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.
TonyTax, Tax Consultant
Category: Tax
Satisfied Customers: 15846
Experience: Inc Tax, CGT, Corp Tax, IHT, VAT.
TonyTax and 2 other Tax Specialists are ready to help you

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.
 
 
 

Related Tax Questions