capital gains tax

[sunnyliz]

sorry more capital gains questions ...

gifted a house in nov 1999, which i occupied as my primary redidence till oct 2001 when i bought and moved into my current home. i have let out the original property for the last two years but now wish to sell. what capital gains am i liable for and is there any way this can be avoided ?

thanks

[Tax Accountant]

sorry more capital gains questions ...

gifted a house in nov 1999, which i occupied as my primary redidence till oct 2001 when i bought and moved into my current home. i have let out the original property for the last two years but now wish to sell. what capital gains am i liable for and is there any way this can be avoided ?

thanks

Period Nov 1999 to Oct 2001 = 2 years + final 3 years = 5 years of gains will be covered by PPR exemption. The remaining period of approximately 1.5 years out of 6.5 years will be chargeable. All gains are time-apportioned.

However, the chargeable gains will be further reduced by lettings relief upto the lower of 2/6ths of the chargeable gains and £40,000. Any balance will be reduced by taper relief of 20% and annual exemption. Remaining gains will be added to your other taxable income and gains of the year of disposal and taxed according to your total income and gains.

Depending on the amounts involved, the chargeable period of 1.5 years may well be covered by lettings relief, taper relief and annual exemption. If not, it may help further if you are able to occupy the house again as your only or main residence before you sell.

Ramnik