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Sam, Accountant
Category: Tax
Satisfied Customers: 14218
Experience:  26 HMRC expertise, PAYE, Self Assessment ,Residency, Rental Income, Capital Gains, CIS ask for Sam Tax
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I recently sold my home and I am currently living in rented

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I recently sold my home and I am currently living in rented accommodation. I will soon be awarded sole ownership of a property that is tenanted, as part of a divorce settlement. I plan to use all of the cash proceeds from the sale of my home and most of the proceeds from the sale of the tenanted property to buy a new home that will be my sole residence and then the only property that I own.My question is will I have to pay capital gains on the profit of the sale of the tenanted property and if so what % of the gain will I have to pay tax on?
Thank you, Cathy

Hi, Sam here , one of the UK tax Experts here on Just Answer, thank you for your question and I shall reply shortly


Yes you will have capital gains on the property that is tenanted -as this has not been your home (if at all) for the period of ownership

So perhaps you can advsie has this tenanted property been in your name at all - when will it be in your name and will you make any gain (profit) between the date it was in your name and will be sold ?

The percentage you pay depends on

1) How much the gain is and

2) How much your annual income is



Customer: replied 4 months ago.
The property was jointly owned by myself and my husband. It may still be jointly owned when sold if the divorce has not been finalised. I have been self employed on the lowest tax band throughout the period of ownership and sometimes earned so little I paid no tax.
I am assuming that I will pay 50% of the capital gains on the profit earned during the period of joint ownership and 100% (at the lowest rate) on any period of sole ownership?
Thanks, Cathy


Thanks for your response

If the property is still in joint names at the time of sale, then yes you will be considered on just 50% of the gain made (and this changed to sole ownership then yes 100% of the gain for that specific period)

Then of that amount less the costs to buy and sell at the appropriate share) and less any capital improvements such as new kitchen etc etc (again to reflect your share)

Then the first £11,300 (2017/2018 rate) will be exempt and any remaining gain 18% on the amount equal to unused basic rate band and and any remaining gain at 28%

Let HMRC know when the sale has taken place and declare it on the self assessment tax return on a capital gain page within the self assessment return



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