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Capital Gains Tax help

6 replies

Ploughingthrough · 06/11/2020 03:47

Hi, I'm hoping someone a bit more money savvy can help me. In Aug 2013 we bought a home for 245k. We spent about 50k doing it up and adding an extension. We are currently living overseas and return in summer 2021 but don't plan to move back in to our home, instead we wish to sell the property and use the money towards a deposit to a bigger home, alongside the money we have saved abroad.

It will be worth about 425k (obviously market dependent but very popular area and this is what done up houses in the area are currently going for).

To complicate things a little, we will have been working overseas for the last 2 years and have let our house out for that time. We also let our house out for 1 year in 2015. So for 5 of the years it has been our main residence where we lived, and 3 years it was let to others.
Will we owe CGT? If so, is anybody able to help me figure out roughly how much this bill would be? Would we save on CGT if we moved back into the house for a period, or will it not make much difference now?

When we get back we will get an accountant, but just for our future planning it would be great to have an idea of if and what we owe.

OP posts:
CovidClara · 06/11/2020 19:20

Go and ask on money saving expert but really you need to pay for specilaist advice . If you were overseas -it wasn't your main home?

FanSpamTastic · 06/11/2020 19:53

The government provide a calculator here.

Lazypuppy · 07/11/2020 12:28

Probably a bit yes hut as it was rented and you lived in it that will reduce how much you have to pay.

There are online calulators where you put all figures in and it will give you an idea

Winebottle · 07/11/2020 12:49

If you are working abroad that counts as "deemed occupation" but you will need to move back in before selling to get that.

You will get deemed occupation for the year in 2015, as you lived there before and after.

Therefore, if you move back in, you shouldn't have any gain in you move back in and then sell.

If you don't, the last 9 months counts as deemed occupation anyway so you would be only looking at 18 months out of 5 years.

NoSquirrels · 07/11/2020 13:26

It won’t be loads - if you’re joint owners the CGT is split between you and you each get an allowance. You don’t pay for the years you were owner-occupiers. And if you move back for a bit so that it’s your primary residence at the point you sell, you won’t pay any CGT.

MarieG10 · 09/11/2020 09:14

Suggest you read this but do get professional advice

www.property118.com/can-move-back-btl-minimise-cgt-liabilty/

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