CGT letter 3 years after disposal of property - normal?

[jmsgld]

Had an "Information about property disposals" letter from HMRC, fair enough, but I sold the property in question a little over 3 years ago. Seems a bit odd?

It had previously been my main residence, but had been let out before selling.

I am confident that no CGT is owed, just wondering if this is normal or do I need to start digging out paperwork?

Thanks,

James

Edited by jmsgld on Tuesday 23 October 17:44

[E36GUY]

Had you bought a new residence prior to selling the flat?

[jmsgld]

Yes, but before the SDLT changes came about.

Flat was main home, was rented out for 6 months whilst abroad, then main and sole residence again, then rented out (at which point bought another house) before being sold.

Bought / sold / moved main residence 3 weeks ago, may be why it has come up.

Edited by jmsgld on Monday 22 October 11:28

Edited by jmsgld on Tuesday 23 October 17:42

[QuickQuack]

From my understanding of the law around CGT, it would be due on the increase in the value of the property during the period(s) where it was rented. Given the relatively short periods involved, it may well be under your CGT allowance but that'll depend on location etc. HMRC would also expect that you declared and paid the income tax due on the rent minus the usual costs and expenses. However, I am neither a tax lawyer nor an accountant, and I just do as my accountant tells me to do, which usually involves paying various sums to HMRC.

[rs4kev]

In the year of disposal were the total proceeds more than 4x the annual allowance (circa 40k so i assume likely) and were you registered to file self assessment in that year?

[davek_964]

I sold a property about 10 years ago - I had lived in it when I'd initially bought it for a couple of years, but then it had been rented out for about 15 years I think.

I found the rules for working out CGT pretty confusing - there were various allowances that could be applied. I paid for some software to work it out (can't remember where I got it from) - it was basically just an excel spreadsheet. Had to enter stuff like when I bought the property, how much for, how many years I lived there, how many years it was rented, what I'd sold it for etc. and it worked out the CGT (which was well under my allowance and far less than my futile attempt had worked it out to be).

[uknick]

What are your calculations as to why you think there's no taxable gain on the property?

[jmsgld]

Thanks for all your help. I am in the process of changing accountants anyway, and so discussed briefly with the new one today. It seems my calcs were correct but will have her double check when I meet with her next week.

I just wondered if anyone else had received the letter, seems not...

Edited by jmsgld on Tuesday 23 October 17:41