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bigduckontax
bigduckontax, Accountant
Category: Tax
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Will we be liable gains tax if we sell the only

Resolved Question:

Will we be liable for capital gains tax if we sell the only house we own (rented out)if we live in work related accomodation (vicarage). WE have never lived in the house we own or claimed it as our main home
Submitted: 1 year ago.
Category: Tax
Expert:  bigduckontax replied 1 year ago.
Hello, I am Keith, one of the experts on Just Answer, and pleased to ba able to help you with your question. Your house is your sole or main domestic residence; it is the only house you own. With that comes an entitlement to Private Residence Relief (PRR) which relieves Capital Gains Tax (CGT) at 100%. You currently live in job related accommodation. HMRC Help Sheet 283 states: 'If you live in accommodation that is job-related and you also own a dwelling house that you intend to occupy as your only or main residence, the dwelling house you intend to occupy is treated as actually being occupied by you as a residence during the period in which you intend to occupy it, even if you never actually live there. This means that you may nominate that residence as your only or main residence and get relief on the whole or a part of the gain.' You will, however, have to declare any net rental income for Income Tax (IT) purposes. I do hope that I have been able to set your mind at rest on this matter.
Customer: replied 1 year ago.
thank you you have set my mind at rest.
Expert:  bigduckontax replied 1 year ago.
Delighted to have been of assistance. Please be so kind as to rate me before you leave the just Answer site. In the mid 70s I arrived in Nepal to find the place in uproar over a Defence Council Instruction (DCI) which the then Inland Revenue had persuaded the MOD to issue. It was to the effect that servicemen' sole or main domestic residence was their Government quarter and that their own property, if they owned one, would be subject to CGT. I drew attention to the law on the matter as a rented house could not be so described and the DCI was hurridly withdrawn and the Inland Revenue left with egg on it's face.
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Expert:  bigduckontax replied 1 year ago.
Thank you for your support.