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bigduckontax
bigduckontax, Accountant
Category: Tax
Satisfied Customers: 4203
Experience:  FCCA FCMA CGMA ACIS
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I have owned a property for 25 years and rented it out for 4

Resolved Question:

I have owned a property for 25 years and rented it out for 4 years would there be any capitol gains tax to pay
Submitted: 1 month ago.
Category: Tax
Expert:  bigduckontax replied 1 month ago.

Hello, I am Keith, one of the experts on Just Answer, and pleased to be able to help you with your question.

Was this a reside let it out a dwelling? If so was it your sole or main domestic residence before you rented it?

Customer: replied 1 month ago.
I bought the flat in June 1992 lived in it until August 2013 then rented it out until end of August 2017 am now selling it. It's just a normal residential flat
Customer: replied 1 month ago.
it was my sole and only domestic residence before I sold it.
Expert:  bigduckontax replied 1 month ago.

Right, there will be a Capital Gains Tax (CGT) charge levied on the gain made, but reduced to reflect your occupation time plus the last 18 months of ownership when you are deemed to be in residence even if this is not the case.

Your total ownership time is say 305 months. Your occupation time is 260 months. 305 - 260 = 45 so 45 / 305 = say 15% of any gain made would be subject to CGT. However, you do have a non cumulative Annual Exempt Amount (AEA) of 11.3K plus Lettings Relief (LR) up to 40K to offset this gain. This will minimise your exposure considerably. CGT is levied at 18% or 28% or a combination of the two rates depending on your income including the gain in the tax year of disposal.

I do hope that you have found my reply of assistance.

bigduckontax and other Tax Specialists are ready to help you
Expert:  bigduckontax replied 1 month ago.

I think from experience you will find it easier to ring me. I am on 01750 725420.