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Hello, I am Keith, one of the experts on Just Answer, and pleased to be able to help you with your question.
If there is any dispute as to the market value of your property the matter will be resolved by the Valuation Office Agency (VOA), part of HMRC staffed by Chartered Surveyors. VOA's main function is assessing bandings for Council Tax or ditto for business rates, but they are also advised of all transactions in landed property and thus have an excellent database of values.
You say that you did not live in the house for some 42 months. Was it let out during that period. Once I know this I can advise you further.
For the last 18 months of ownership you are deemed to be in occupation even if this is not the case so for 24 months you were not in occupation as the premises were let at a peppercorn rental. Total ownership period is 168 months so 24 / 168 [14%] of any gain made on disposal will be taxed at 18% or 28$ or a combination of the two rates depending on your income including the gain in the tax year of sale. From this proportion you can deduct 11.1K (Annual Exempt Amount (AEA) to reveal the gain exposed to Capital Gains Tax (CGT). ,The gain is the difference between the net selling price ie after deducting sales costs and the acquisition price. The latter is the purchase price plus the purchase costs including stamp duty land tax plus any improvements eg installation of double glazing, central heating, extensions, but not routine maintenance. All in all your exposure to CGT is likely to be small.
I do hope my reply has been of assistance.
If yiu have let the property then Lettings Relief (LR) may apply, but you will have to have occupied the premises either before or after the letting priod. If no rent has been paid then there is no relief.
Thank you for your support.
No, LR is a relief not a charge, but if there was no rental received then there is no relief.
I am a diabetic and must eat, I will be back to you soon with a ball park computation.
Mortgages do not come into the CGT computation. Only 14% of the gain is exposed to CGT as I told you. 14% of 433.5 is say 61K. Now deduct AEA at 11.3K leaves say 49.4K exposed to CGT. A worst case scenario is a tax bill of say 18.3K. The gain is taxed at 18% or 28% or a combination of the two rates depending on your income including the gain in the tax year of sale. If you could get away with 18%, which seems unlikely, then the bill would fall to close to your figure.
I do hope that you have found my reply of assistance.
Thank you for your excellent support.