Hello, I am Keith, one of the experts on Just Answer, and pleased to be able to help you with your question.
Correct, Rent a room Scheme does not affect the Capital Gains Tex (CGT) position.
No, the rules have changed; Experts for Expats advise:
'The UK tax loophole which allowed overseas investors and British Expats to avoid Capital Gains Tax (CGT) on the sale of residential property is now closed.
The new rule, which came into effect on April 6, 2015, will particularly affect British Expats and non-UK residents with UK property, especially those with buy-to-let agreements which generate an income. This new rule will mean that the sale of a UK property, which currently attracts no UK capital gains tax could incur a UK capital gains tax bill in the region of 28% on any gains made after April 6th 2015, depending on your personal circumstances.'
No, you would be liable to CGT on any gain made from a 6 April 2015 valuation. This would be levied at 18% or 28% or a combination of the two rates depending on your income including the gain in the tax year of sale. You have a non cumulative Annual Exempt Amount (AEA) of 11.1K to offset this and may be entitled to Lettings Relief (LR) up to 40K also.
You would only have to produce evidence in the event of a relatively rare HMRC inspection. One's normally kept records should suffice. However, you will need a 6 April 2015 valuation.
I am so sorry to have to rain on your parade.
Theoretically evidence of local trades is acceptable, but to get a proper professional valuation might be more prudent.
Private Residence Relief (PRR) is only available if you occupied the property as your sole or main domestic residence. PRR is, of course, a very valuable concession as it relieves CGT at 100%.
Thank you for your support.
Your capital gain of 200K will be adjusted as follows. Take your total ownership period in months [A]. Take your letting time less 18 (for the last 18 months of ownership you are deemed to have been in residence even if this is not the case). Then 6 / A will be the ratio of the gain exposed to the tax. Now deduct your AEA and LR and I suspect that you will find that you have no tax to pay, or if you do it will be minimal.
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