How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Sam Your Own Question
Sam, Accountant
Category: Tax
Satisfied Customers: 14192
Experience:  26 HMRC expertise, PAYE, Self Assessment ,Residency, Rental Income, Capital Gains, CIS ask for Sam Tax
Type Your Tax Question Here...
Sam is online now

I moved into a council flat in Nov 1986. I purchases it in

This answer was rated:

I moved into a council flat in Nov 1986. I purchases it in July 2002 and moved out in Jan 2006 I have been renting it out since that date. If I sell now will I be liable for capital gains tax or could I continue to let it for 2 more years ??

Thanks for your question, my name is XXXXX XXXXX I am one of the UK tax experts here on Just Answer.

Yes you will be liable to capital gains tax, as you will be selling a property, that. although was once your main home, has not been for more than 36 months - so this triggers a capital gain


Customer: replied 4 years ago.

Isnt there an allowance if you lived in the property for a long time???

Hi You get credit for the time you lived there known as private residence relief - and this also covers the last 36 months of ownership (due to change to last 18 months from 06/04/2014) and also will qualify for private lettings relief, as this was your main home AND you have let it out to tenants (and I assume declared all rental income to HMRC) but a capital gain will still arise.


You only lived here for 4 years (from the date of ownership to when you moved out) and then have the period from Jan 2006 to when you sell, which is 8 years when it was NOT your main residence!!!


And whilst 3/1.5 years taken off these 8 years for private residence relief, and any remaining gain can be reduced by the private lettings relief, and the first £10,900 of any gain is exempt (this is to increase to £11,100 from 06/04/2014) you are still likely to have a capital gain to consider.


Thanks Sam

Sam and other Tax Specialists are ready to help you
Hi Kathy

I have noted you have rated me as poor service, may I ask what else you required?
As I can only offer you the correct answer ..... not one that you may want to hear - which I am sure you can appreciate.