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Thank you for your question.
- month in 2007 the property was bought.
- month in 2014 the property was first let
- confirm the property is still let (or advise month and year you ceased to let the property
- if the property is jointly owned or in your sole name
Thank you for your reply.
Based on information provided, you would make a capital gain of £70,500 on sale of property,
The whole gain is covered by private residence relief covering the period the property was your main residence and letting relief (available if you sell a property that was your main residence at some point and also let during the period of ownership. There in no CGT payable.
More information on private residence relief can be found on HS283 here
If you had made a loss on sale of property, you would report the loss by completing a tax return and this loss is available for offset against future capital gains.
Although there is no CGT payable on this sale, nevertheless you have to report the gain by completing supplementary pages SA108- Capital gains summary together with the main tax return. As the sale is taking place now, the gain would be reported next year when you file tax return 2017 (tax year ending 5 Apr 2017).
I hope this is helpful and answers your question.
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Calculations with more information and some corrections.
No change is CG calculation.
I am sorry to say, you can't offset income tax bill against capital gains/losses.
You will make a capital gain but there would be no CGT payable as all gain would be covered by reliefs available.
You income tax bill is arising from the fact there was income in excess of your personal allowance that was not taken into account when calculating your income tax liability initially.
I hope this answers your question.