Capital gains tax on BTL property I lived in

[andye30m3]

I have a BTL flat which I think I've pretty much decided to sell.

Is anyone able to give some advice on what CGT I should expect to pay and does it make any difference that I lived in the property for a number of years?

I bought it in 2002 for £110,000, value today should be in the region of £225,000.

I lived in it from 2002 until about 2015 when I moved into my girlfriends house, does this make any difference to the capital gains tax I'll end up paying. I expect in the time it's been let out in increased in value by in the region of £25k if that makes any difference.

[UpTheIron]

The only valuations of any relevance are the price you paid and the price it sells for.

This will work out your gain: https://www.gov.uk/tax-sell-property/work-out-your...

You then need to work out the PRR you are entitled to https://www.gov.uk/government/publications/private...

I think Lettings Relief still exists until next April too.

And also don't forget your annual CGT allowance.

Looking at the headline figures and the fact it was your main home for most of the time you are unlikely to be facing a big bill.

[Eric Mc]

Is it jointly owned?

[anonymous-user]

I believe that you're entitled to private residency relief for the period that you lived in it. So you would only be paying CGT on the £25,000 gain that has been made, minus the amount you spent in renovations and other costs. i.e. your tax liability will be next to nothing (a few K), I believe.

[UpTheIron]

Making some assumptions:
Purchase Price: 110000
Purchase Costs: 1000
Improvements: 0
Sale Price: 225000
Sale Costs: 1000

Gain: 113000

Owned from Jun 2002 to Jun 2019 = 17 years / 204 months

Main residence from Jun 2002 to Jun 2015 = 13 years / 156 months
Final 18 months relief means you can claim PPR for 174 of 204 months.

Chargeable gain after PPR:
113,000 * ((204-174)/204) = £16617.65

If I've got this bit right, Letting Relief is as follows:
Rented for 4 years / 48 months

(48/204) * 113,000 = £26588.24

LR is greater than the chargeable gain, so zero tax to pay.

[andye30m3]

Thanks for the replies

it's not jointly owned.

I've followed the link posted about, and it looks like it should be quite minimal which is a relief, thought I was going to end up with a big bill for a while .

[anonymous-user]

Yeonyou won't have a big bill as shown above. But I look at it this way, it reduces the profit I've made rather than given me a big bill. You'll still be better off than if you hadn't had it

[Alpinestars]

The gain should be nil after PPR and letting relief.