CGT on property let out but previously ppr

[retep]

My relative has a mortgage on a flat which she lived in from when she first bought it about five years ago until October of last year, when she rented it out when she moved elsewhere. She only owns the first flat, as she is herself renting her present accommodation from a landlord.

Can anyone advise me please on the CGT situation if she wishes to sell her flat say, during the next 12 months? Would she need to move back into the flat before selling it, to gain any CGT advantage? Thanks.

Peter

[P.Pilcher]

Although I'm sure Karongo will shortly post chapter and verse on the matter, I think you can rent out your former PPR for two years without loosing any of your capital gains tax exemption.

P.P.

[retep]

Thanks P.P. - that's helpful.

Peter

[Tax Accountant]

Although I'm sure Karongo will shortly post chapter and verse on the matter, I think you can rent out your former PPR for two years without loosing any of your capital gains tax exemption.

P.P.

Thank you for your compliments, P Pilcher.

I am in a rush and therefore will not be able to post chapter and verse.

However, I can confirm that the property will be exempt from CGT so long as it is sold within 3 years of the date it ceased to be owner-occupied as only or main residence.

Additionally, she will also qualify for lettings relief as she is letting a previously owner-occupied flat as residential accommodation.

There are also other reliefs such as taper relief and annual exemption.

In a nutshell, she could sell it a lot longer than the 3 years after moving out and still not have to pay much, if any, CGT.

I hope this helps her.

Ramnik

[retep]

Thanks for that very useful info. Ramnik, which I'll pass on to my relative.

Peter

[Tax Accountant]

Thanks for that very useful info. Ramnik, which I'll pass on to my relative.

Peter

You are welcome.

Ramnik