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1. august 1983 - we have lived there all time with family for 20 years
2. august 2003 - its been let since then till now
tony - hi any idea how long and do I stay logged in here ?
ok wait for your response
Hi again.If you sell the property for £280,000 having bought it for £33,000, you will make a gain of £247,000. Assuming you sell it in December 2014, by that time you will have owned it for 377 months of which you will have lived in it for 240 and let it for 137. I've left out the £10,000 for improvements from my calculations as you don't have receipts and as you will see further on in this answer, you don't need to claim it. The following figures are for each of you individually:The gain for the period the property was your main home will be exempt from CGT as will the gain for the last 18 months of ownership. That accounts for £84,517 (£123,500 / 377 months x 258 months). The remaining gain of £38,983 is that part of the letting period gain which is not covered by the last 18 months of ownership (£123,500 / 377 x 119).As the property was both your main home and it was let you will be entitled to letting relief which will be the lesser of:1 £40,000,2 the sum of the main residence period gain and the gain for the last 18 months of ownership of the property which is £84,517 and3 the letting period gain of £38,983.Letting relief of £38,983 will reduce the remaining gain of £38,983 to £0 and you should have no Capital Gains Tax to pay.I hope this helps but let me know if you have any further questions.
Where does the figure of £123,500 come from in your calculation? Should this not be based on a gain of £247,000?
hI tony ,
are both payments to you ? and how much ?
ta for letting me know