valuation required after 3 years

[chav-u-like]

Hi,
I did a let to buy almost 3 years ago. As I understand it I do not have to pay any capital gains tax if I sell the property within 3 years of letting it out. Further after the 3 year period is up, I can get an up to date valuation and I will only be liable to pay tax if/when I sell on the difference between this final valuation and the selling price.
Firstly can someone confirm whether this is true and secondly what is the best way of getting a valuation. Should I just ask a few estate agent to go around and value it and get the valuation in writing from the highest suggested selling price.
Note I have no intention of selling the property in the forseable future.

Thanks.

[Tax Accountant]

Hi,
I did a let to buy almost 3 years ago. As I understand it I do not have to pay any capital gains tax if I sell the property within 3 years of letting it out. Further after the 3 year period is up, I can get an up to date valuation and I will only be liable to pay tax if/when I sell on the difference between this final valuation and the selling price.
Firstly can someone confirm whether this is true and secondly what is the best way of getting a valuation. Should I just ask a few estate agent to go around and value it and get the valuation in writing from the highest suggested selling price.
Note I have no intention of selling the property in the forseable future.

Thanks.

Final 3 years use of the property for letting is exempted from CGT, but only if the property has been your only or main residence (ie used as home) at any time in your ownership.

If you continued letting for more than 3 years, any excess period is chargeable to CGT; however, all or some of the gains for the excess period may be covered by other reliefs and allowances, eg, lettings relief, taper relief and annual CGT allowance.

Gain in initially calculated over the whole period of ownership. This gain is then divided between exempt periods and chargeable periods. All apportionment of the gain is by reference to number of months, ie time apportioned, and not by interim valuations. For CGT purposes, gain is deemed to have accrued evenly over the whole period of ownership.

Therefore, if your gross gain is £120,000 over a period of 10 years, the gain is apportioned at the rate of £12,000 per year, or £1,000 per month.

Therefore, there is no need for any valuation at any time.

Ramnik