selling a home which is now rented - tax ?

[andy_b]

asked something similar on here once before but the situation has changed a little, so to recap.

We've owned a house since Nov 2001 at paid 135k

In March of this year we moved to Canada and rented out our house from the end of April 2005. We got a new mortgage with a present lender, but didnt get a value, we believe its worth about 170k at that point.

So, due to some possible changes of circumstances, we may have to sell our house in the UK before we come back.

So, if we sold the house next year for 170k then what would be the tax impications? Would we need to live in the house to get around this?

any thoughs appreciated

[andy_b]

cool, regardless, we will be back by then

Pheww!

[zcacogp]

Good ... (it's our situation as well, so good news for me too!)


Oli.

[JonRB]

You also have taper relief as well, so you don't get wacked for CGT even after the window tonker mentions.

I'm sure Eric MC will be along shortly to give us the facts.

[Eric Mc]

Yes, you get relief for the period in which you lived in it. You also may get an extar relief called Commercial Letting Relief. You will get some Taper Relief.

Finally, on the assumption that the property is jointly owned, you will also both get your CGT annual allowances which is currently £8,500 each.

If you are resident in Canada for the entirety of the tax year in which the property is sold, you may not even have to any any UK tax at all - although you might have to pay Canadian tax on the sale.