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Sam
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 am thinking of selling a flat I purchased in 2003 for my

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Hi I am thinking of selling a flat I purchased in 2003 for my father he lived in it until 2011. I then let it until now. This results in a gain of about £115000.
I owned and lived in another flat between 2002 and 2011 when i moved in with my partner in her house where I still pay rent to her. I sold this flat in 2015 and did not pay CGT as it was my residence.
I do not own any other residence can I claim my fathers flat as my residence to not pay CGT as I have no other residental property. I did not live in it.
Regards
***** *****e

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

HI

First you should have paid capital gain son the other flat you owned as it was not your main residence from 2002 and 2015 (when sold) so you need to rectify this

And the flat you purchased for your father will also attract full capital gains as you never lived here so there is no exemption of any element of the gain

Its not enough that it was your only residence, (tho for the period 2013 and 2015 this was not the case anyway) it has to have been your main residence (so you actually live there) for the whole period of ownership (or for some of the time - so for example from 2002 to 2011 then you are due some exemption as your only and main residence with the flay you sold in 2015 - but from 2011 to 2015 this was NOT the case) ) and with both of these flats - this was not the case, and this is why capital gains are due

So amend the 2015 declaration and also make sure you declare the sale of this flat you are due to sell to HMRC

Thanks

Sam

Sam and other Tax Specialists are ready to help you
Customer: replied 1 month ago.
Hi Sam. The first flat sale was agreed with HMRC and a small element of CGT may have been paid. Your comments on my Fathers flat are noted and agree with my accountants.
Thanks
John

Ho

Glad to have been of assistance

Thanks

Sam