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TonyTax
TonyTax, Tax Consultant
Category: Tax
Satisfied Customers: 15950
Experience:  Inc Tax, CGT, Corp Tax, IHT, VAT.
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I am proposing to sell a flat which is not my main residence

Customer Question

I am proposing to sell a flat which is not my main residence in the next tax year. It was bought for £128,000 in 1998 and it was used as a second home until Jan. 2005 when it was used as my main residence for 12 months while major refurbishment was carried out at my previous main residence to which I later returned. In April 2007 I decided to let the flat and it has been let ever since. The proposed sale price would be about £676,000. Are there any tax reliefs available (for example, in view of my occupation during that 12 month period). I am a higher rate tax payer.
Submitted: 10 months ago.
Category: Tax
Expert:  TonyTax replied 10 months ago.

Hi. My name is*****'m looking at your question now and will post my answer or ask for more information here in a short while.

Expert:  TonyTax replied 10 months ago.

Take a look at HS283, in particular Example 9.

First off, the gain is treated as having accrued on a straight line basis. The value of the property when it was first let is irrelevant.

You should get relief for the period that you lived in the property as a proportion of the whole period of ownership and, in addition, you will get relief for the last 18 months of ownership as a proportion of the whole period of ownership and letting relief of up to £40,000 per part owner. Look at the examples here as well.

I hope this helps but let me know if you have any further questions.

TonyTax and other Tax Specialists are ready to help you
Expert:  TonyTax replied 10 months ago.

I can call you at about 5.30pm if thats OK.

Customer: replied 10 months ago.
That will be OK with me.Will speak then
Expert:  TonyTax replied 10 months ago.

Thanks.