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Hello Lee, I am one of the experts on Just Answer and pleased to be able to help you with your question.
Did you occupy this flat as your sole or main domestic residence before you lt it out?
Take the total ownership time in months. Take the letting time in months less 18, for the last 18 months of ownership you are deemed to be in residence even if this is not the case. put the adjusted letting time over the total ownership time and express as a percentage. That percentage applied to the net gain on sale will be the taxable amount. Now deduct your non cumulative Annual Exempt Amount (AEA) of 11.7K and Lettings Relief (LR) up to 40K and the residue will be taxed at 28%.
The ploy of the rental being paid to the wife may, and I only say may, be possible if it can be shown that she has 100% management control over the flat. Don't bank on it though, HMRC regard such arrangements as close to tax evasion.
I do hope that you have found my reply of assistance.
I am sorry, but Just Answer has chopped up my reply so as to make it incomprehensible! The 'non' and the '20%' and 'management' have been cut up.
No, just use the full ownership time, the 50 % 100% combined. You will probably find that your Capital Gains Tax (CGT) liability will be minimal, but the later you leave the sale it will increase as the percentage exposed rises.
Only on this web site now, I ceased my private practice when I became an OAP and have but one customer now and I have known him these 50+ years.
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Thank you for your excellent support.
Delighted to have been of assistance.