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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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I had a buy-to-let flat which I moved into in December 2014.

Resolved Question:

I had a buy-to-let flat which I moved into in December 2014. It is now my only home. If I sell it next year, will I be liable for Capital Gains Tax. If so, will it be calculated from 6/4/2015?
Submitted: 1 year ago.
Category: Tax
Expert:  taxadvisor.uk replied 1 year ago.

Thank you for your question..

Please advise when you bought the property and for how long it was a let property.

many thanks

Customer: replied 1 year ago.
I bought it in 2004. It was tenanted until July 2005. I then had work done and did not let it again until June 2008. With a few void periods, it was let until July 2014. For about six months between July 2005 and June 2008, I told the Tax Office that it was my principal residence, as I had hoped to be able to convert it back into a house.
Expert:  taxadvisor.uk replied 1 year ago.

Thank you for your reply and for additional information..

Capital gain is the difference between the net proceeds from sale and the cost price when bought. You can offset the costs associated with buying and selling the property against the gain. Your gain will not be calculated from 6 Apr 2015.

You would get private residence relief for all period the property was your main residence (including some period between 2005 and 2008).

as it has been your main residence at some point during period of ownership, you would also be able to claim letting relief for period let (maximum relief is £40,000).

More information on what reliefs and allowances are available is covered in HS283 here

https://www.gov.uk/government/publications/private-residence-relief-hs283-self-assessment-helpsheet/hs283-private-residence-relief-2016

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.

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Customer: replied 1 year ago.
Thank you.