CGT on previous main residence

[thankgodsvensgone]

I bought a property to live in in 1990 for £40,000 and lived there until 2003 when I bought another property with my wife which became my main residence.

I have rented out my first property for the last 3 and a half years but when I got notice from my current tennants I decided to put the house on the market and I now have an offer, which I have accepted, for £112,000.

I have never declared the rental income to the tax man as I make hardly any profit from it (no excuse I know) but I'm unsure as to whether or not I'm going to be clobbered for CGT. Anyone any advice please?

[Tax Accountant]

I bought a property to live in in 1990 for £40,000 and lived there until 2003 when I bought another property with my wife which became my main residence.

I have rented out my first property for the last 3 and a half years but when I got notice from my current tennants I decided to put the house on the market and I now have an offer, which I have accepted, for £112,000.

I have never declared the rental income to the tax man as I make hardly any profit from it (no excuse I know) but I'm unsure as to whether or not I'm going to be clobbered for CGT. Anyone any advice please?

(1) I suggest come clean with the taxman for tax on rental profits so you don't have to keep looking over your shoulders.

(2) As this was your main residence in the past, final 3 years of ownership are automatically exempted. This leaves gains for only approx 6 to 12 months period exposed. This will be approx £ 3,000 and which is more than easily covered by all available allowances, reliefs, and exemptions.

Nothing to worry about regarding Capital gains Tax on profits.

Ramnik