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taxadvisor.uk
taxadvisor.uk, Chartered Certified Accountant
Category: Tax
Satisfied Customers: 4996
Experience:  FCCA - over 35 years experience as a qualified accountant (UK based Practitioner)
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My husband and I sold our jointly owned property in the uk

Customer Question

My husband and I sold our jointly owned property in the uk although we both now live outside the UK - we had the property let for 12 mths prior to selling it - do we have to declare it for Capital Gains Tax ?
Submitted: 1 year ago.
Category: Tax
Expert:  taxadvisor.uk replied 1 year ago.
Thank you for your question.You may not have to pay any CGT but you are required to declare a gain from sale of your property.There have been changes to CGT rules for non-resident landlords with effect from 6 Apr 2015.More information on this can be found herehttps://www.gov.uk/guidance/capital-gains-tax-for-non-residents-calculating-taxable-gain-or-lossand herehttps://www.gov.uk/guidance/capital-gains-tax-for-non-residents-uk-residential-property I hope this is helpful and answers your question.If you have any other questions, please ask me before you rate my service – I’ll be happy to respond.
Customer: replied 1 year ago.
Thanks for the references - I didn't realise that we needed to make the declaration - having completed this I see that we can claim Private Residents Relief - but can we also claim relief for the period when the property was rented - 01/08/14 to 31/07/15.
And I take it that although we weren't living at the property between 01/08/15 and its sale date of 22/12/15 we don't fullfill the day test thing but how does the 18 months get considered then?
Expert:  taxadvisor.uk replied 1 year ago.
Thank you for your reply and for additional information.Provided the property was your main residence at some point during period of ownership, you would claim- private residence relief for all the period the property was your main residence- additional relief for final 18 months of ownership (this would cover the period 01/08/2015 to 22/12/2015)- letting relief for the period the property was let (cover period 01/08/2014 to 31/07/2015)The 18 months of ownership is overlap period between period let and last 5 months. Based on this, it appears all gain would be covered by aforementioned reliefs.When completing supplementary pages SA108 - capital gains summary show your gain and also show the whole amount as private residence relief giving zero chargeable gain (if the above reliefs apply fully) I hope this is helpful and answers your question.I will appreciate if you would kindly rate my service/accept the service I have provided before you leave the site, to ensure I get credited for it by Just Answer.
Expert:  taxadvisor.uk replied 1 year ago.
Hi there, I hope I have addressed all points raised by you. If you are unclear on any aspect, please do come back.