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TonyTax
TonyTax, Tax Consultant
Category: Tax
Satisfied Customers: 15971
Experience:  Inc Tax, CGT, Corp Tax, IHT, VAT.
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I just did the CGTax calculations, and there is no tax I

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Hello, I just did the CGTax calculations, and there is no tax I need to pay on the Glasgow flat I sold in June 2016, I owned it from 06/10/2000 and sold it on 03/06/2016. I bought it for 205000 and sold it for 385000. expenses of buying were £5053 and selling were 12136.36. gain was 162522.00. was rented out for a total of 58 months. last month of rent was February 2016 and sold in June 2016. so 43 being rented out outwith the last 18 months. the gain per month is about £864 brings it to a total of £37172.
I think using the sum of £37172 as lowest figure for the purpus of letting relief, and as I have £11000 CGT allowance for that year, it comes out lower than £44000 as total CGTax I think I would owe on the 162522.00. indeed it will be much lower than the and CGTax I might owe on the period I was not a resident in this flat? I never owened any other residence whilst owning this flat. I never lived in another residence away from this flat whilst not being rented out for more than 10 months (moved away in August 2010 to work in Bournemouth, rented the flat out in April 2011).
Do I need to declare any thing you think?

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.

Customer: replied 1 month ago.
Great thanks.

Did you reoccupy the property before it was sold?

Customer: replied 1 month ago.
Yeah, it was my sole residence until I put up for rent. then stopped renting it in February 2016 and sold it in June 2016
Customer: replied 1 month ago.
NO I didn't reoccupy it before it was sold

You may or not be entitled to absence relief as described here. Also, see CG65050.

Even if you aren't entitled to absence relief which treats the qualifying period as a period of deemed residence, you can claim letting relief for that period instead. If you forget absence relief and claim letting relief instead I have the following figures:

Total periof of ownership - 189 months

Total owner occupation - 119 months

Total letting period - 59 months

Total vacant period - 11 months

Main residence and last 18 month relief - £117,807 (£162,522/189 x 137 (119 + 18)

Letting relief - £38,696 (£162,522/189 x 45 (59 - 14)

Vacant period gain £6,019 (£162,522/189 x 7) (11 - 4)

The vacant period gain is covered by the annual CGT exemption of £11,100 but you still need to report the disposal as the disposal proceeds were more than £44,400.

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

TonyTax and other Tax Specialists are ready to help you
Customer: replied 1 month ago.
Thanks a lot for your detailed answer. I presume you took into account the last 18 month period included 15 months of rent period. Also, I was prevented from returning to reside in the flat because I was working elsewhere. never returned to Glasgow.
Thanks again and if I have any further questions I will come back to ask you. Kind regards
Hussam

Thanks for accepting my answer.

I added 18 months to the period that you lived in the property and deducted it from the vacant poeriod and the letting period. See the figures in brackets.