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TonyTax
TonyTax, Tax Consultant
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Experience:  Inc Tax, CGT, Corp Tax, IHT, VAT.
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I bought a flat in 1992 for £72,000 and occupied it as my only

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I bought a flat in 1992 for £72,000 and occupied it as my only and sole residence, apart from 6 months let when I worked abroad. I married in 2002 but retained the flat as my only property whilst living in my wife's house. The flat was let occasionally but was mainly vacant. My wide died in 2014 and I inherited her house. I sold my flat this month for £165,000.
Presumably I can claim relief for the period 1992 to 2002, but is there relief for the next period as my only owned property?
How is the CGT calculated?
Submitted: 1 year ago.
Category: Tax
Expert:  TonyTax replied 1 year ago.
Hi. Let me take a look at this and I'll get back to you in a bit.
Expert:  TonyTax replied 1 year ago.
Take a look at HS283 here for information on the main residence and CGT. Whether your gain of £93,000 will be fully tax free will depend on the facts and figures, ie how long you owned it, how long it was your main home, how long it was let for and the amount of the gain. A married couple can only have one main residence between them. Assuming that no election was made for one of the properties to be treated as your mian home wasn't made, the matter will be decided on the facts. You will get exemption for that part of the gain which is covered by your occupation of the property as your main home and for the gain for the last 18 months of ownership regardless. As the property has been let as well as having been your main home, you will qualify for letting relief. Take a look at example 9 in HS283 to see how main residence relief and letting relief work in combination. The property you inherited will be treated as your main home from 1992, notwithstanding the fact that you didn't have an equity interest in it until you inherited it. Take a look at CG64950, CG64953 and CG64955 for more information. I hope this helps but let me know if you have any further questions.
Expert:  TonyTax replied 1 year ago.
I've amended this slightly: Take a look at HS283 below 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 Whether your gain of £93,000 will be fully tax free will depend on the facts and figures, ie how long you owned it, how long it was your main home, how long it was let for and the amount of the gain. A married couple can only have one main residence between them. Assuming that no election was made for one of the properties to be treated as your main home wasn't made, the matter will be decided on the facts. You will get exemption for that part of the gain which is covered by your occupation of the property as your main home and for the gain for the last 18 months of ownership regardless. As the property has been let as well as having been your main home, you will qualify for letting relief. Take a look at example 9 in HS283 to see how main residence relief and letting relief work in combination. The property you inherited will be treated as your main home from 2002, notwithstanding the fact that you didn't have an equity interest in it until you inherited it. Take a look at CG64950, CG64953 and CG64955 for more information. I hope this helps but let me know if you have any further questions.
TonyTax, Tax Consultant
Category: Tax
Satisfied Customers: 15838
Experience: Inc Tax, CGT, Corp Tax, IHT, VAT.
TonyTax and other Tax Specialists are ready to help you
Customer: replied 1 year ago.
THANK YOU FOR YOUR REPLY.I HAVE NOT HAD TIME TO LOOK UP ALL YOUR REFERENCES, BUT MEANWHILE DO THE FOLLOWING QUALIFY AS ALLOWABLE EXPENDITURE TO BE TAKEN FROM THE OVERALL GAIN:1. MORTGAGE INTEREST
2. EXPENDITURE ON CAPITAL ITEMS e.g. ROOF REPLACEMENT
3. LOSSES WHILST THE PROPERTY WAS NOT LET BUT VACANTLOOKING FORWARD TO YOUR REPLY.
Expert:  TonyTax replied 1 year ago.
1 No. Mortgage interest is deductible from rental income. 2 The cost of improvements is deductible but you may be asked to provide proof in the form of receipts and invoices. Photographic evidence may be accepted. 3 No.

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