Thread: Confused...CGT can anyone explain

I own a property that I rent out in England and that I may want to sell in a couple of years. Trouble is I am getting very confused by the CGT requirements. I emailed the Inland Revenue and got a very cryptic response! My house has equity of about 100k at the moment, my mum and nan hold a charge on the property because they helped me buy it when I was getting divorced from my first husband. I am looking at either selling and buying elsewhere so that I have a mortgage free home or selling and buying somewhere where my husband and I want to retire to when he gets out the army.

I am a qualified mortgage advisor, but it has been a while since I have been able to practise my advice and was hoping someone could give me a clarity on this subject.

Sam x

So what are you exactly wanting to know? The current CGT requirements on selling/renting your home? How many years have you owned it? Have you ever lived in it? The thing is the requirements tend to change annually so what is applicable now, wont be in a few years time. You've gotta love the bloody HMRC!!! Oh and do you currently submit a tax return? And is the property rented out furnished or unfurnished?

Dizzy,

I bought the property 7 years ago, and lived in it until February when I started to rent it unfurnished.I will need to submit a tax return next year, although have already completed forms with the I.R advising them the property is now rented and they do not take tax due to me now living overseas.

Just want a brief idea of situation now, so I can at least have a rough outline and check out all finer details when I know exactly what we're doing.

Thanks,

Sam x

The thing is whether you lived in it or not makes a difference. Also the fact that you are accompanying your hubby (so had to move abroad) may indeed make a difference but unlikely. There are a load of exemptions you see. Last three years of ownership are considered "occupied". Its a bit of a mine field to be honest. You also have a CGT exemption of currently £10,100 so this is deducted. Whats left is charged at 18%. Thats a very rough idea and is subject to change. But at least it will give you a rough idea.

Edited to add this in no way constitues advice and are just the inane ramblings of a dizzy bird!

I know that, but I appreciate it.

Check PM's Sam

Dizzy x

Thanks Diz