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TaxRobin
TaxRobin, Tax Consultant
Category: Tax
Satisfied Customers: 15332
Experience:  International tax
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We currently live in spain. We moved here in april 2014,

Resolved Question:

Hi, We currently live in spain. We moved here in april 2014, we are not residents and pay uk tax. We let our UK home on 25 April 2014. We wanted to know the capital gains tax liability on our UK home which we lived in from october 2000 until April 2014. We have been looking online and it seems that things are changing regarding house letting in the UK this year. Property prices are rising very quickly in the area that out house is located and we are not sure whether to diversify and sell the property and buy 2 smaller properties but wanted to know if we should do this now or to wait another year ie 36 months of letting.
Thank you
Submitted: 1 year ago.
Category: Tax
Expert:  TaxRobin replied 1 year ago.
No matter how many homes you own or where you lived at the time, you always get relief for the last 18 months before you sold your home.Before 6 April 2014, the limit was 36 months, and that amount of time remains for people who are disabled or move out of their homes to go into full-time residential care.You use the amount you sell for and subtract the cost of buying , this includes the purchase price, legal fees and stamp duty and money for improving the property. That calculation gives you your net gain.Use the number of months you lived in the home and add 18. Then divide this figure by the number of months you owned the home in total. Multiply that fraction by the net gain and that is the amount you can use to reduce the gain for Private Residence Relief.Waiting will not increase your private residence relief. Please remember to rate my service excellent once you have all the information you need. If you have any other questions, please ask me – I’ll be happy to respond. Thank you!
Customer: replied 1 year ago.
Hi thank you for your reply. We did not declare in writing to HMRC that the home in question was our main home ( we did not know that we had to) obvoiusly bills and council tax declare that is was. Is that sufficient for HMRC.
Expert:  TaxRobin replied 1 year ago.
Yes that would be sufficient.You are most welcome.My goal is to give you excellent service.Your positive rating is thanks enough.
Expert:  TaxRobin replied 1 year ago.
When you actively click on a rating and click submit, that lets Just Answer know you were assisted and credits me for the time.
Customer: replied 1 year ago.
Lastly what is the percentage rate for capital gains tax after all the tax relief has been deducted?
Expert:  TaxRobin replied 1 year ago.
You’ll either pay 18% or 28% tax on your gains.How much you pay depends on the size of your gain and taxable income.
Expert:  TaxRobin replied 1 year ago.
It’s been a pleasure working with you and I hope to assist you again soon!Rating lets Just Answer know you received an answer which then credits me for my time.
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