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taxadvisor.uk
taxadvisor.uk, Chartered Certified Accountant
Category: Tax
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Experience:  FCCA - over 35 years experience as a qualified accountant (UK based Practitioner)
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I brought a property in England with my brother 10years. I

Resolved Question:

I brought a property in England with my brother 10years. I moved in with my partner 5 years ago but my brother stayed in the original house.
We are now looking to sell the property which has increased in value. My brother expects to spend his half on his new home but I still live my partner. Does me selling the property count as my second home? I have no financial stake in my partners house & I am not on the deeds. I am a nurse so my income is modest but am concerned that I will have to pay CGT.
Submitted: 1 year ago.
Category: Tax
Expert:  taxadvisor.uk replied 1 year ago.

Thank you for your question..

You moved out of the property 5 years ago.. some periods of absence still qualify for relief.

In your case absences for whatever reason, totalling not more than 3 years in all would qualify for private residence relief.

Additionally, last 18 months of ownership would qualify as the property was your main residence at some point during period of ownership.

The above covers 54 of 60 months and six months period out of a total of 120 months would be chargeable to CGT (about 7% of the gain).

This is likely to be covered by gains annual allowance of £11,100.

More information on private residence relief is covered here

https://www.gov.uk/government/publications/private-residence-relief-hs283-self-assessment-helpsheet/hs283-private-residence-relief

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.
Many thanks for your answer. I thought it unlikely that I would have pay anything but it's always best to hear it from an expert.Thanks again.
Expert:  taxadvisor.uk replied 1 year ago.

Thank you for your reply.

If you are happy and there are no more issues I will appreciate if you would kindly rate/accept the service I provided to ensure I get credited for it by Just Answer.

taxadvisor.uk and 2 other Tax Specialists are ready to help you
Expert:  taxadvisor.uk replied 1 year ago.

I thank you for accepting my answer.

Best wishes

Customer: replied 1 year ago.
The house was brought for £250,000 but I only paid half. The house has been valued @ £525,000 but I'll only get half. After the sale will I have to fill in a tax assessment form?
Expert:  taxadvisor.uk replied 1 year ago.

Thank you for your question.

You will have to fill in a tax return and also aupplementary page SA108 Capital gains summary although there is no CGT payable.

Many thanks

Customer: replied 1 year ago.
Again...many thanks.
Expert:  taxadvisor.uk replied 1 year ago.

You are welcome.

best wishes

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