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taxadvisor.uk
taxadvisor.uk, Chartered Certified Accountant
Category: Tax
Satisfied Customers: 4973
Experience:  FCCA - over 35 years experience as a qualified accountant (UK based Practitioner)
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I owned a flat until Nov 2014, but was largely living at my

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I owned a flat until Nov 2014, but was largely living at my boyfriend's from March 2013.
I was the sole owner of, and financial contributor to, my flat, and I never let it out during my absences. I wasn't a financial contributor to my boyfriend's house but, partly for convenience and partly because moving in with him completely was the longer term plan, I was using that as my address for most important (including financial) mail and was on the electoral roll.
Do I need to pay CGT on the sale of my flat? All the info I can find about main residence vs second home is based on owning the second property.
Submitted: 1 year ago.
Category: Tax
Expert:  taxadvisor.uk replied 1 year ago.
Thank you for your question..Please advisefor how long you have owned the flat?when did you sell it?How long did you live in the flat as your only and main residence? Many thanks
Customer: replied 1 year ago.
I bought the flat on 05/07/2002 and sold on 06/11/2014.It was certainly my only and main residence until the end of December 2012, but I don't know if it counts as my main residence after that, because of the electoral roll/correspondence address issue. That's really what I'm asking.Thanks
Expert:  taxadvisor.uk replied 1 year ago.
Thank you for your prompt response.The period you lived in the property i.e. upto end Dec 2012 is covered by private residence relief.You moved out of the flat in Jan 2013 and it was sold in Nov 2014.Final 18 months of ownership would also qualify for relief, whether you lived in the property or not as it was your main residence at some point during period of ownership.This leave you with a period of (23-18) 5 months that are not covered and represents (5/149) 3.3% of the gain.Even if you made a gain of £300k on the sale of your flat, 3.3% of it would be below the gains allowance and therefore no CGT payable.Although you had moved to another place, the flat qualified for all relief available and you did not own another property to claim main residence relief.More information on private residence relief can be found herehttps://www.gov.uk/government/publications/private-residence-relief-hs283-self-assessment-helpsheet/hs283-private-residence-relief I hope this is helpful and answers your question.If you have any other questions, please ask me before you rate my service – I’ll be happy to respond.
Customer: replied 1 year ago.
Thanks very much!The actual figures are: bought for £99,950 in July 2002, extended lease for £14,750 in April 2014 and sold in November 2014 for £220,000, so an overall gain of £105,300.I had thought that you knocked the allowance for the relevant year (£11,000) off this figure before working out the relief, so was assuming that I might have to pay CGT - at 28% as a higher rate taxpayer in that year - on £3,165 or 5/149 of £94,300.So, although you've indicated that I probably couldn't treat my flat as my only and main residence for the entirety of the time I owned it, your answer has been very helpful in reassuring me that I don't need to pay any CGT.Thanks!
Customer: replied 1 year ago.
Oh, and as apart from this, all my income for that year was PAYE salary, do I need to do a self-assessment form?
Expert:  taxadvisor.uk replied 1 year ago.
Thank you for your reply.Basically, you work out all reliefs available from the gain before arriving at chargeable gain.You take your gain allowance from the chargeable gain and the balance is taxed at CGT rate of 18%, 28% or a combination of both.As there is no chargeable gain after gains aloowance, you have no CGT liability.As you asset sale proceeds exceeded £44,000, you have to complete a self assessment form and supplementary pages SA108- Capital gains summary and report this gain albeit there is no CGT payable. I hope this is helpful and answers your question.If there are no more issues, I will appreciate if you would kindly rate my service/accept the service I have provided before you leave the site, to ensureI get credited for it by Just Answer.
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Customer: replied 1 year ago.
Thank you, ***** *****'s very helpful and clear.
Expert:  taxadvisor.uk replied 1 year ago.
I thank you for accepting my answer. Best wishes

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