• 100% Satisfaction Guarantee

TonyTax, Tax Consultant
Category: Tax
Satisfied Customers: 15659
Experience:  Inc Tax, CGT, Corp Tax, IHT, VAT.
13905389
TonyTax is online now

# How is capital gains worked out on a property that we rent

### Resolved Question:

How is capital gains worked out on a property that we rent and now wish to sell. We have lived in the property for seven years and rented it for three. We're unmarried
Submitted: 9 months ago.
Category: Tax
Expert:  TonyTax replied 9 months 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. Is it jointly owned? 2 Assuming you moved in as soon as you bought it, when did you move out (month and year)? 3 When was the property first let (month and year)? Has it been let more or less continuously since? 4 The value of the property now.
Customer: replied 9 months ago.
It's jointly owned, purchased March 2006, for £170500, moved out January 2013. Tennants moved in March 2013, they're still in it and the house was valued at £310000 today.
Customer: replied 9 months ago.
We're both higher rate tax payers currently if that makes a difference.
Expert:  TonyTax replied 9 months ago.
Thanks. It does make a difference if you are a higher rate taxpayer. Leave this with me while I do some calculations. They will take a while so please bear with me.
Expert:  TonyTax replied 9 months ago.
The following figures are for each of you individually: Total period of ownership to, say, April 2016: 122 monthsTotal period of occupation by you: 83 monthsTotal period of letting: 38 monthsTotal period of vacant status: 1 monthsShare of Gain: &pound;69,750 (&pound;310,000 - &pound;170,500 / 2)Exempt gain: &pound;57,744 (&pound;69,750 / 122 x 101 (83 months owner occupation + last 18 months of ownership regardless) Letting period gain: &pound;25,985 (&pound;69,750 / 122 x 20 (38 months of letting - last 18 months of ownership)Vacant period gain: &pound;572 (&pound;69,750 / 122 x 1)Total non-exempt gain: &pound;12,006 (&pound;11,434 + &pound;572)Letting relief: &pound;11,434 (lesser of &pound;40,000, &pound;57,744 and &pound;11,434)Taxable gain &pound;572 (&pound;12,006 - &pound;11,434)Annual CGT exemption &pound;11,100Net taxable gain &pound;0CGT is charged at 18% or 28% or a combination of the two rates depending on the level of your income in the tax year of disposal but that's not relevant in your case as there is no net taxable gain.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-reliefI hope this helps but let me know if you have any further questions.
TonyTax, Tax Consultant
Category: Tax
Satisfied Customers: 15659
Experience: Inc Tax, CGT, Corp Tax, IHT, VAT.

### 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

• ### Sam

#### Satisfied Customers:

6894
26 HMRC expertise, PAYE, Self Assessment ,Residency, Rental Income, Capital Gains, CIS ask for Sam Tax
< Last | Next >

### Sam

#### Satisfied Customers:

6894
26 HMRC expertise, PAYE, Self Assessment ,Residency, Rental Income, Capital Gains, CIS ask for Sam Tax

### bigduckontax

#### Satisfied Customers:

1772
FCCA FCMA CGMA ACIS

### TaxRobin

#### Satisfied Customers:

464
International tax

#### Satisfied Customers:

2596
FCCA - over 35 years experience as a qualified accountant (UK based Practitioner)

### Anna

#### Satisfied Customers:

268
Great research skills, variety of work experiences, teaching experience.

### pdheslin

#### Satisfied Customers:

51
20+ years of internet site creation and search engine optimization. Dozens of search tools at my disposal.