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taxadvisor.uk
taxadvisor.uk, Chartered Certified Accountant
Category: Tax
Satisfied Customers: 4805
Experience:  FCCA - over 35 years experience as a qualified accountant (UK based Practitioner)
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I have 2 properties as follows 1 Bought March 2012 for

Resolved Question:

Hi I have 2 properties as follows
1 Bought March 2012 for 340k +costs on sale now for 550k
Lived in from March 2012 - Oct 2014 - 31Months
July 2015 -August 15 - 1.5 Months
Rented out 01/10/14 - 12/07/15 - 9.5 Months
01/09/15 -Currrent - 5 Months
2 Bought 24/10/14 Current bought for 418k +costs accepted offer of £528 should complete in 2015/16 tax year
Will I be liablbe for capital gains on either property if I sell the second one without moving back in
Submitted: 11 months ago.
Category: Tax
Expert:  taxadvisor.uk replied 11 months ago.
Thank you for your question.. Second property - bought Oct 2014Was this property ever used as main residence?If so, for how long? First property - Bought Mar 2012You say you lived in it for 31 months before moving out and came back for a short spell in Aug 2015 and that it was let for 14.5 months.Please confirm. Many thanks
Customer: replied 11 months ago.
Second property- Has always used as main residence since purchaseFirst Property Used as main residence for first 31 months - was let as follows
01/10/14 - 12/07/15
01/09/15 - now
Expert:  taxadvisor.uk replied 11 months ago.
Thank you for your reply. Second propertyAs this property has been used as main residence since purchase all gain would be covered by private residence relief and therefore no CGT payable. First propertyThis property would attract private residence relief for all period it was your main residence. In addition you would get relief for final 18 months of ownership whether you lived in it or not as it was your main residence at some point during your period of ownership.There would also be letting relief available for the period it was let.Basically, the whole gain would be covered by relief.More information on this can be found here - HS283 private residence reliefhttps://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 11 months ago.
Thanks for the answers a few more questions
1 If I did not manage to sell my second property for say another year would that change the tax position
2 What is letting relief
Expert:  taxadvisor.uk replied 11 months ago.
Thank you for your reply.As the second property has been your main residence since purchase, all the period you live in it as your main residence would entitle you to private residnce relief on that property.. it would not change your tax position.letting relief is available on private residential homes that are used as main residence but are also let for some period during the period of ownership when you move out to another property.This is explained under letting relief within helpsheet HS283.. maximum letting relief available is £40,000. I hope this is helpful and answers your question.
Customer: replied 11 months ago.
Sorry I meant first property not second
Expert:  taxadvisor.uk replied 11 months ago.
Thank you for your reply..You would get letting relief for all period it is let . at present it covers 15 months say it takes another 6 months and the property remains let then your letting period is 21 months out of total period of ownership of say 54 months..(31+18) of this would be covered by prr and the rest by letting relief.. i don't see any tax payable.Remember, if there was any gain not covered by aforementioned reliefs , then £11,100 would be covered by gains annual allowance. I hope this is helpful and answers your question.I will appreciate if you would kindly rate my service/accept the service I have provided before you leave the site, to ensure I get credited for it by Just Answer.
taxadvisor.uk, Chartered Certified Accountant
Category: Tax
Satisfied Customers: 4805
Experience: FCCA - over 35 years experience as a qualified accountant (UK based Practitioner)
taxadvisor.uk and 2 other Tax Specialists are ready to help you
Expert:  taxadvisor.uk replied 11 months ago.
I thank you for accepting my answer.
best wishes

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