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taxadvisor.uk
taxadvisor.uk, Chartered Certified Accountant
Category: Tax
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Experience:  FCCA - over 40 years experience as a qualified accountant (UK based Practitioner)
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I have a property which was my main residence. It's had

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I have a property which was my main residence. It's had renovations done and I moved in with my partner. It was rented out for 3 years from 2013-17. It's empty now and I want to know if I should sell now or rent it out again. Which will see me make the lowest cgt contribution?
Assistant: Have you talked to a tax professional about this?
Customer: No
Assistant: Anything else you want the Accountant to know before I connect you?
Customer: I don't think so, no

Hello and welcome to JustAnswer. I am here to help you. I am reviewing your question and will respond to you shortly.
Many thanks

Customer: replied 4 days ago.
Thank you

Thank you for your question.

Please advise

- likely gain if you were to sell it in current tax year

- period when property was main residence

- total period of ownership

- expenditure on capital improvements as opposed to general repairs and maintenance

- owned jointly or in sole name

Many thanks

Customer: replied 4 days ago.
Purchased for 325,750 and hope to achieve 500,000. 80000 paid for extension and original stamp 16000. Purchased November 2017 and main residence until 2013.
Ownership is sole.
Thanks
Customer: replied 4 days ago.
Sorry. Purchased November 2007.

Thank you for your reply.

Please confirm .. was the property let for

3 years or

5 years (2013-17)

Many thanks

Customer: replied 4 days ago.
It was actually from June 2014 to september 2017

Thank you for your patience.

Attached is my CGT calculation for your perusal.

I advise you to sell your property before 5 Apr 2020 as there are changes being introduced from 6 Apr 2020 that would have an adverse effect on reliefs available to you. For a start, you are restrictions on letting relief .. in your case you would lose it.

My calculation assumes you sell in the current tax year.

My aim is to give you a professional service. I hope this is helpful and answers your question.

Please remember to rate my service by selecting the 5 stars at the top of the screen before you leave JA today. If you need more assistance, please use the reply box below and let me know. It has been my pleasure to assist you with your question.

Hi there

Just checking to see if you need more clarification/information or have I answered your question.

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Many thanks

Customer: replied 3 days ago.
Thanks for the prompt response. Would this situation change if I rented out for the next 12 months? Obviously April 2020 sees a change to the 18 months reduce to 9 months but will I get a cgt bill?

Thank you for your reply.

If you were to rent out for the next 12 months, you would lose letting relief and reduced additional relief.. I would consider selling before 5 Apr 2020 unless you can make enough money from rental income and additional capital gain to compensate loss of letting relief and final 9 months allowance.

I hope this is helpful and answers your question.

If there are no more issues, I will appreciate if you would kindly rate my service by selecting the 5 stars at the top of the screen before you leave, to ensure I get credited for it by Just Answer today.

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Best wishes.