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bigduckontax
bigduckontax, Accountant
Category: Tax
Satisfied Customers: 5823
Experience:  FCCA FCMA CGMA ACIS
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I am thinking of selling my 2 bed end terrace property,

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Hello....I am thinking of selling my 2 bed end terrace property, there is no mortgage on it but I have not lived in it for the past 3.5yrs....I moved in with my partner and her property is rented...the house is lived in though by my stepson. He does not pay rent, I pay all the bills as they are in my name, except the Council Tax which has him as the sole resident, but he pays me at month end whatever the outgoings are. The house is fully insured for buildings and contents and also for business in so far as my stepson has his own web design business and works at home....no stock is kept at the property and no clients come to the house. I am wanting to know what, if any, tax implications I would be liable for should I sell the property via an estate agent or a "webuyanyproperty.com" type buyer.....thank you....Ian
Assistant: What steps have you taken so far? Have you prepared or filed any paperwork?
Customer: No steps, just an enquiry as to what tax implications I would be liable for as I have not lived in property for 3.5yrs...
Assistant: Have you talked to a lawyer about this?
Customer: No...
Assistant: Anything else you want the lawyer to know before I connect you?
Customer: No...

Hello, I am one of the experts on Just Answer and pleased to be able to hlep you with your question.

As you are selling your sole or main domestic residence Private Residence Relief (PRR) applies which offsets Capital Gains Tax (CGT) at 100%. Not many people realise when they sell their home that a CGT liability arises as PRR is given automatically. Whether you live in it or not is irrelevant in your current circumstances. You might get a better price through an estate agent than the roulte you suggeated if you don't mind people traipsing through your house making adverse comments!

I do hope that I have given you some food for thought.

Customer: replied 21 days ago.
Thanks.....so just to make it absolutely clear for myself....if I sell through whichever route, estate agent or "webuyanyhouse" then I will receive the whole of the agreed price (cannot imagine it is worth more than £50k) and will not have to pay any form of tax due to the PRR & CGT cancelling each other out, irrespective of me not living there...??......Ian

Correct, from the data so far imparted to me, Ian.

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