Have Tax Questions? Ask a Tax Expert for Answers ASAP
Hello, I am Keith, one of the experts on Juat Answer, and pleased to be able to help you with your question:
You will be liable to Capital Gains Tax (CGT), but only for the period the property was let out. For the rest Private Residence Relief (PRR) will apply as it was your sole or main domestic residence. Your total ownership time is 63 months. Your let time is 24 months so 24 / 63 say 38% of any gain will be exposed to CGT which will be levied at 18% or 28% or a combination of the two rates depending on the individuals' income including the gain in the 16/17 tax year. Half of the gain each will be subject to tax and you both have an Annual Exempt Amount (AEA) of 11,3K and Lettings Relief (LR) up to 40K to offset this. If the movement was to job related accommodation my answer may require aplification.
I do hope that you have found my reply of assistance.
No, property letting does not constitute a business for entitlement to Entrepreneurs' Relief (ER). You could always try it on, but I doubt it would get through HMRC's filters!
Please be so kind as to rate me before you leave the Just Answer site.
Thank you for your support.