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Ask Your Own Question, Chartered Certified Accountant
Category: Tax
Satisfied Customers: 5147
Experience:  FCCA - over 35 years experience as a qualified accountant (UK based Practitioner)
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What would be the capital gains tax payable on an apartment

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What would be the capital gains tax payable on an apartment if sold now for 390K .the apartment was bought in 2002 for 200K and used ,for a number of years as the family home .For the last 8 years it has been a rental property
Hello and welcome to the site. Thank you for your question.

Please clarify for me...
What do you mean by ... for a number of years as a family home?
Was it your property and main residence or was it occupied by extended family?

If it was lived in by you and your family as your main residence then advise number of years it was occupied as main residence.

Many thanks
Customer: replied 4 years ago.

I am actually enquiring on behalf of my daughter who is resident in the UK

She and her husband bought the apartment in 2002 and lived in it until 2005 when they bought another residence and rented the apartment



Thank you for your reply...

I will revert to you shortly with calculations

many thanks

Here are CGT calculations ..

As the property was jointly owned, each owner would be able to claim letting relief.
It is assumed the property is sold before 5 Apr 2014 as there is a change in additional relief available.. it will be restricted to final 18 months of ownership as opposed to 36 months up to 5 Apr 2014.

CGT calculations

Sale proceeds


Cost price


Potential capital gain


Period covered as main residence


(2002 - 2005)

Period unoccupied


Period covered as let property


(2006 -Feb 2014)

Total period of ownership


(2002 - Feb 2014)

Final 36 months relief


Private residence relief


Gain subject to CGT


Gain per owner


Maximum letting relief available - lower of

Fixed amount set by HMRC per owner £40,000


Private residence relief


Gain on the part of the property that's been let


Letting relief


Gains chargeable to CGT


Gains annual allowance (£10,900 per owner)


There is no CGT payable as chargeable gain after private residence relief and letting relief will be covered by gains annual allowance as shown above.

I hope this is helpful and answers your question.

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