Talk

Advanced search

Mumsnet has not checked the qualifications of anyone posting here. Free legal advice is available from a Citizen's Advice Bureau, and the Law Society can supply a list of local solicitors.

Capital gain on a flat that has been lived in and then let out?

(4 Posts)
longerdays Thu 26-Jan-17 11:29:09

I know this has been asked before but tax treatment seems to change a lot so was wondering if someone on here is an accountant or similar?

If you had a flat that you lived in for say 10 years then let it out for 10 years and now want to sell it how is any gain in price treated for tax purposes? I know there used to be various allowances etc but suspect this has all changed since last tried to understand this. Thanks very much.

Downstairspoo Fri 27-Jan-17 14:23:28

You'll be exempt from gain from the period you were living it in plus the last 18 months of ownership
So whatever increase in value was over the 20 yrs (can take off costs of purchase and sale, estate agent fees, Stamp duty on purchase etc)
11.5/20 of that increase will be exempt (10 yrs lived in it plus last 18 months)
With regards to the rest of the gain you can claim letting relief up to £40k

www.gov.uk/tax-sell-home/let-out-part-of-home

tigerrun Fri 27-Jan-17 14:29:31

In addition to the above you should be able to add three years for the 'any reason' clause - so it would be 14.5/20 that was exempt. Also if you worked elsewhere in the UK you have 4 years you could use plus any time working abroad?

www.gov.uk/tax-relief-selling-home

longerdays Fri 17-Feb-17 00:18:36

what is the "any reason" clause? Thanks.

Join the discussion

Join the discussion

Registering is free, easy, and means you can join in the discussion, get discounts, win prizes and lots more.

Register now