CGT on ex-owner-occupied house latterly let-out?

[davd]

I am a new user to this forum but would like some advise
My wife and i bought my house 18 years ago for £10.000 it is now worth £130.000 we have lived in it for 15 years and for the last 3 year we have rented it out to a friend cash only we are now thinking of selling .
Would we be liable for CGT as we are living elsewear on the job and my friend has been registered as living in my house {eg council tax}

[Tax Accountant]

I am a new user to this forum but would like some advise
My wife and i bought my house 18 years ago for £10.000 it is now worth £130.000 we have lived in it for 15 years and for the last 3 year we have rented it out to a friend cash only we are now thinking of selling .
Would we be liable for CGT as we are living elsewear on the job and my friend has been registered as living in my house {eg council tax}

(1) If your friend has been paying you rent, you should be declaring this and paying tax thereon. If you haven't already done this, you should do this without further delay.

(2) At present you have 15 years exempted for use as your home. You also have the final 3 years exempted automatically. Therefore, at present you have 18 years exempted out of total ownership period of 18 years, ie 100% exempted.

Even if you take some time to sell it, the additional period is likely to be covered by other reliefs and allowances.

I don't think you have anything to worry about as far as CGT is concerned.

Ramnik

[davd]

Thanks for advise it looks like i might be selling soon as my friend may be moving on, it started as a short term let for a couple of months but it lasted a bit longer, how dose tax man find out

[Tax Accountant]

Thanks for advise it looks like i might be selling soon as my friend may be moving on, it started as a short term let for a couple of months but it lasted a bit longer, how dose tax man find out

Should you not be asking how to declare the rental income to the taxman rather than how to dodge him?

Ramnik

[Tax Accountant]

Thanks for advise it looks like i might be selling soon as my friend may be moving on, it started as a short term let for a couple of months but it lasted a bit longer, how dose tax man find out

Should you not be asking how to declare the rental income to the taxman rather than how to dodge him? This course of action is not to be encouraged, certainly not by me.

Ramnik

[davd]

I was under the impression that you could set any rent against the mortgage and other costs so money was not made on the renting, it just covered costs until we decided what to do with the house

[Tax Accountant]

I was under the impression that you could set any rent against the mortgage and other costs so money was not made on the renting, it just covered costs until we decided what to do with the house

You are still obliged to declare the rental income, even if you made a loss. If you haven't made any profit, you have nothing to worry about. Make sure you count only the allowable expenses and not all outgoings. For example, mortgage interest is allowable but not any capital element included in the mortgage repayments.

Ramnik