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CGT question

(7 Posts)
poppyshouse Sat 22-Nov-14 18:17:53

Hi

DH and I have moved abroad and are thinking about selling our house in the UK as we are not sure whether we will be coming back. The problem is that we did not live in the property all the time so we are not sure whether we will need to pay any capital gains tax when we sell as we are likely to make a profit of around 130k.

The property was bought in June 2004 and remained our main residence until August 2008.

We then let the property for a year between September 2008 and September 2009 after which we moved back in until end of July 2011.

The property was then empty from August 2011 until March 2012 after which we let it for two years from April 2012 to April 2014. It has remained empty since the last tenants left.

The questions we have are:

Will we have to pay any CGT if we manage to sell before April 2015 and decide not to come back?

How much will we have to pay if we do not come back but only manage to sell after April 2015?

And finally, how much will we need to pay if we sell but decide to come back within the next 5 years?

Would really appreciate it if someone with knowledge in this area could help us shed some light on this.

TIA

TalkinPeace Sat 22-Nov-14 18:32:59

The CGT is based on the gain since it stopped being your main residence ie since July 2011
NOT since you bought it
that gain may not be very much
and you each get £10k tax free allowance
and then the CGT is at 40% of the amount that is left ....

wowfudge Sat 22-Nov-14 18:47:59

Do a google search for capital gains tax on property and you should find a link to some sound advice from which.co.uk.

The above advice is only partially correct: the last 18 months before sale don't count for CGT purposes, the personal allowance is £11,000 and my understanding is that the level of any CGT payable is at your tax rate.

I think you should take specialist advice - or you can use HMRC's online CGT calculator for starters - to see what you potential liability is.

specialsubject Sat 22-Nov-14 18:51:15

here's the current rules:

https://www.gov.uk/tax-sell-property

the last 18 months of ownership don't count. This was halved in the last budget and may change again (the government hates landlords, even accidental ones, nearly as much as many mumsnetters) so don't hang around.

Also if it has been empty since April get rid of it quickly, this is really not good.I hope someone is keeping an eye to keep your insurance valid.

TalkinPeace Sat 22-Nov-14 19:46:33

sorry, lazt typing : it was £10 k for so long I'd forgotten that Gideon had raised it
and yes, the last 18 month bit counts in
but as the OP last used it more than that ago its sideways

the bigger issue will be how it all interacts with your overseas tax return and how the declarations of income has been handled

you will definitely need to take face to face advice on this one

poppyshouse Sat 22-Nov-14 20:46:33

Thanks to everyone replying to my post and also bringing up other points worth mentioning such as insurance issues and overseas taxes.

Would anyone know who to consult for face to face CGT advice in the UK, i.e. would a 'normal' high street solicitor do?

TalkinPeace Sat 22-Nov-14 20:48:27

nope, you need an accountant
TBH my port of first call would be this forum
www.ukbusinessforums.co.uk/forums/accounts-finance.55/
as there are some really good people based all over the country

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