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I am selling a house that I have owned since 1981. The house was originally purchased in joint names for £13,500 and a further £3,500 was borrowed during the mortgage period between 1981 and 2006 when it was paid off in full. In 2007 my partner and I split up and I paid her £60,000 for her share of the house. At this time I spent around £15,000 on a new kitchen, bathroom and windows. I moved out of the house later in 2008 to live with a new partner but my son lived there until 2011 though he did not pay me any rent. In October 2011 I rented the house to some bad tenants who left the property in a poor state of repair. They left in April 2015 and I have again spent a further £5000 in repairs though most of this was decoration and refurbishment including £1,800 for a new boiler. My son is intending to buy the house which has been valued at about £130,000 but I am reducing the price to £115,000 to help him out. I have no idea how to calculate my capital gains tax liability. I am 61 yrs old and am retired with an occupational pension of about £20,000 and part time earning of around £3000.
Hi Keith, thank you that is very reassuring! So, I have no need to advise HMRC of the sale of my property? I will be giving you a positive rating.
In the information box on your presumably 15/16 self assessment tax return just advise them that you have disposed of your sole or main domestic residence.
Thank you for your support.