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Ask Your Own Question, Chartered Certified Accountant
Category: Tax
Satisfied Customers: 5143
Experience:  FCCA - over 35 years experience as a qualified accountant (UK based Practitioner)
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WE own a property in Scotland, purchased in 1992. We

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WE own a property in Scotland, purchased in 1992. We lived there until July 2013. We then bought our current home and rented out our original on in Dec 2013. We have a let to buy mortgage with an out standing balance of about £32,000. The original purchase price in 1992 was £44,500. We are looking to sell it at £128,000. I am employed, the property is in joint names with my partner who currently works out of the country for 6 months of the year. Are you able to calculate how much capital gains we would pay.

Hello and welcome to the site.

Thank you for requesting I help you with your question.

Please confirm the property is in joint names.
Please leave it with me and I will revert with CGT calculation shortly.

Many thanks

Also advise month in 1992 the property was bought.
Is the property still let?

Many thanks
Thank you for your patience.

I have assumed the property was bought in Oct 1992 and that the property would be let until end Apr 2015 in my calculations. The good news is there is no CGT payable as shown in my calculations...

Sale of property £128,000
Cost price £44,500
Capital improvements £0
Agents fees, solicitors fee and other costs - say £0
Total cost price £44,500
Potential gain £83,500
Period of ownership - months 270
Period as main residence - months 249
Private residence relief - months 267
Potential capital gain £83,500
Gain covered by private residence relief
(267/270) x 83,500 £82,572
Gain subject to capital gains tax (83,500-82,572) £928
Letting relief - maximum £928
This is lower of
£40,000 per owner £80,000
Private residence relief £82,572
Gain on the part of the property that's been let £928
Net chargeable gain after letting relief £0
Gain chargeable to CGT £0

I hope this is helpful and answers your question.

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Best wishes.