• We invite you to join UKWorkshop.
    Members can turn off viewing Ads!

Capital gains tax

UKworkshop.co.uk

Help Support UKworkshop.co.uk:

Mrs C

Established Member
Joined
3 Jan 2016
Messages
356
Reaction score
8
Location
United kingdom
Are there any friendly accountants out there?

We bought our current home 10 years ago, but couldn’t sell our previous property in time so rented it out. We are now considering selling our previous home but want to know what the capital gains tax will be. I believe the tax is only on the gain during the time when it was rented.

I can’t find how you would do a valuation of a property in the past when it wasn’t actually sold? Does anyone know how HMRC validate the valuation?

Thanks
 

Cabinetman

Established Member
Joined
5 Jan 2017
Messages
1,669
Reaction score
839
Location
lincolnshire Wolds
It’s not as simple as may be imagined sometimes, there are allsorts of ways to reduce the tax due – all legal, you just need to know about them, I seriously recommend getting a professional to help. I also seem to remember that your particular circumstances bring other rules to bear. Ian
 

akirk

Established Member
Joined
24 Aug 2020
Messages
216
Reaction score
136
Location
Bristol
Roughly:
Gain from when you bought to when you sell
Pro-rata for the time rented
So lived in 10 years and rented 10 years - capital gains on 50% of overall gain
The value at point of rental is irrelevant
You also have a number of additional months you can claim as being in it plus a whole load of allowances - as others say- any complications - get an accountant!
 

gregmcateer

Established Member
Joined
16 Jun 2011
Messages
2,958
Reaction score
232
Location
Stourbridge, W Midlands
We're in pretty much that position. Other posts point you to right place to start calculation, but I would say DEFINITELY pay an tax accountant to help. Easily saved what you spend on them.
 
Top