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bigduckontax
bigduckontax, Accountant
Category: Tax
Satisfied Customers: 4203
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I am selling a dwelling which has been let tears. Previously

Resolved Question:

I am selling a dwelling which has been let for 3 tears. Previously it was my main residence for 10 years. How is the CGT calculated?
Submitted: 1 year ago.
Category: Tax
Expert:  bigduckontax replied 1 year ago.
Hello, I am Keith, I am one of the experts on Just Answer and pleased to be able to help you with your question. It would greatly assist me if you could tell what the house cost you originally and a possible selling price. I can then address the question more thoroughly.
Customer: replied 1 year ago.
I purchased the flat in 1998 for £95,000. I lived in the flat as my sole residence until 2012. Thereafter I let it at a commercial rent. I am now selling it. I need to know how the gain is calculated for the period it was not my residence, and what tax becomes due (and when).
Many thanksMike
Customer: replied 1 year ago.
Sorry, the selling price in 2016 will be £350,000 if all goes well.
Expert:  bigduckontax replied 1 year ago.
All these calculations are done in months so my answer may not be entirely accurate. Your total ownership time is say 18 years. Your let time is 4 years less the last 18 months when you are deemed to be in residence even if this is not the case. Your exposure to CGT will be calculated as follows. Gain is 255K and of this only 30 / 216 say 14% will be liable to CGT, that is 35.7K. Knock off 11.1K non cumulative Annual Exempt Amount (AEA) and 40K Lettings Relief (LR) leaves nothing exposed to CGT; no tax bill. I do hope that I have cleared your mind over this matter.
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Expert:  bigduckontax replied 1 year ago.
Thank you for your support.