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taxadvisor.uk
taxadvisor.uk, Chartered Certified Accountant
Category: Tax
Satisfied Customers: 5022
Experience:  FCCA - over 35 years experience as a qualified accountant (UK based Practitioner)
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I lived in a house for two years and three years ago I

Resolved Question:

I lived in a house for two years and three years ago I rented out furnished.
Assistant: The Accountant will know how to help. Please tell me more, so we can help you best.
Customer: I lived in a house I purchased with my Grandad for two years while I was a Student. I paid all the bills. For the past two years it has been rented out furnished and now we want to sell. Will there be Capital Gains to pay?
Assistant: Is there anything else important you think the Accountant should know?
Customer: My mother died and I moved back home to live with my 17 year old brother.
Submitted: 10 months ago.
Category: Tax
Expert:  taxadvisor.uk replied 10 months ago.

Hello and welcome to JustAnswer. I am here to help you. I am reviewing your question and will respond to you shortly.
Many thanks

Expert:  taxadvisor.uk replied 10 months ago.
Expert:  taxadvisor.uk replied 10 months ago.

Thank you for your question.

These are the factors that would be taken into account to determine if any CGT is payable.

You have owned the property for 5 years.

Period covered by private residence relief and therefore exempt from CGT = 2years

The last 18 months of ownership is also covered by private residence relief and therefore exempt.

So 54 months out of 60 months are covered, leaving 6 months not covered by PRR.

As you had lived in the property as your main residence at some point during period of ownership, you are also entitled to letting relief and this would cover the remaining gain.

Based of above you are unlikely to pay any capital gains tax.

More information on private residence relief 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 mebefore you rate my service – I’ll be happy to respond.

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Expert:  taxadvisor.uk replied 10 months ago.

I thank you for accepting my answer.

Best wishes