Here goes. In July 2002 I purchased a property that I resided in for a number of years, but as my husband is forces we had to leave that property and let it. Now we are having to buy our own home and we are selling it to fund the deposit. I want to try and figure out if I owe CGT. I have called HMRC who don't think I will owe, but apparently I am not able to report it until next year so will not be sure until then. By which time I am hoping to be living in our 'new to us' family home.
Here goes with the figures as I understand it.
Owned the property for 122 mths when it should complete. Was 105k purchase, and being sold for 147.5k, so a 42.5k gain.
Bought the house in July 2002 and moved out to rent in February 2009 = 79 mths
Last three years Private Residence Relief = 36 mths
Lived in + Private Residence Relief = 115 mths
Leaving 7 mths charged as a taxable gain.
42.5k/122 mths = £348.36 x 7 mths = £2438.52
10k CGT Relief applied = £0 owed to the tax man, or if I am wrong about that relief I will owe £438.94 (18% lower rate tax). I cannot find the right page on the HMRC website (it is beginning to blur now!)
I don't know whether or not this has a bearing but I am currently not working as only landed back in the country two weeks ago.
Have I made a total mess of this, or am I right?
Thanks for the help you lovely MSE peeps x