LandlordZONE

02

Aug, 2014

Saturday

Results 1 to 6 of 6
  1. #1

    Default CGT on a property i lived in for 6 years.

    I bought a property for £95,000 in 2001 and lived in the property for over 6 years. I then decided to keep/rent this property, re-mortgaging for a new property. I re-mortgaged the property for £175,000 as it was valued at 240,000.
    If i wanted to sell the property now - how much CGT would I have to pay?
    I still have £200,000 outstanding on my mortgage i live in.
    I have always done a self cert on the rented property paying my taxes etc! Any help please?

  2. #2
    Join Date
    Aug 2008
    Posts
    3,361

    Default

    Quote Originally Posted by ethan07 View Post
    I bought a property for £95,000 in 2001 and lived in the property for over 6 years. I then decided to keep/rent this property, re-mortgaging for a new property. I re-mortgaged the property for £175,000 as it was valued at 240,000.
    If i wanted to sell the property now - how much CGT would I have to pay?
    I still have £200,000 outstanding on my mortgage i live in.
    I have always done a self cert on the rented property paying my taxes etc! Any help please?
    What is the current market value of your rental property for sale now ?

    How is the 200000pds mortgage connected to the rental property or are you confused ?

  3. #3
    Join Date
    Feb 2010
    Posts
    124

    Default

    Value of property that you sell it for now minus £95,000 = profit on the house. You pay CGT on that.

    Charlie

  4. #4
    Join Date
    Jan 2007
    Posts
    2,228

    Default

    No The OP lived in the property for 6 yeras so PPR and Letting Relief will apply. Read HS283 on the HMRC web site. We await for the OP to tell us the est sale value. Regards Peter

  5. #5

    Default

    The current market value of the rental property is 235,000. The mortgage i have on the property I live in has no connection to the rental mortgage. Both are seperate.

  6. #6
    Join Date
    Aug 2008
    Posts
    2,530

    Default

    Sell today for 235k. Cost 95k. Profit £140k, earned over 11 years, i.e. 12.7k p.a. profit.

    First six years lived in; last three years deemed tax free. Total 9 years.

    Remaining 2 years taxable, i.e. 12.7 x 2 = 25.4k.

    Less letting relief (maximum 40k)

    Taxable gain nil. No tax to pay.

Similar Threads

  1. Replies: 11
    Last Post: 08-10-2011, 11:03 AM
  2. Expat Buildings and Contents Insurance for property lived in by relative
    By curriemm in forum Scottish Rental & Legal Issues
    Replies: 0
    Last Post: 01-08-2011, 14:39 PM
  3. Previously let, lived in for a bit, now let again
    By theartfullodger in forum Tax Questions
    Replies: 0
    Last Post: 05-09-2010, 11:33 AM
  4. CGT on a property i lived in for 6 years.
    By ethan07 in forum Tax Questions
    Replies: 32
    Last Post: 25-07-2010, 23:39 PM
  5. CGT on a proprty I have never lived in
    By jayjaykay100 in forum Tax Questions
    Replies: 7
    Last Post: 08-10-2005, 20:23 PM

Bookmarks

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •