Can anyone explain capital gains?

[myleastfavouriteday]

We lived in a property for 10 years, had to move areas for work and weren't able to sell it so we rented it out for 2 and a half years.

We are now selling it. It was our main residence until 2015.

Do we pay CT on the difference on the price it was valued at and the price we've agreed with the vendors? One of us is a higher rate tax payer, the other isn't. Property in both names.

Legal advice required...it's a long time ago since I looked at it but you should only be paying a percentage based on the two years you rented as no capital gains tax was owed on the ten years you lived in it as your main residence...it's a percentage ofor the difference between what you paid and what you sell for....I think there is also a threshold ...you only pay if you have made over a certain level of profit...it's at a set rate I think....unless it's all changed!!

Thanks night, I think you're right, it's one for the lawyers.

You pay capital gains less reliefs

• last 18 months of ownership
• buying and selling costs
• your cg allowances

There's a calculator on gov.uk

You pay based on the actual price - same as you pay income tax on actual income not some random stuff.

I think you'll be liable to pay on 2.5/12.5 or 1/5 of the uplift. So if you bought for 200k, sold for 300k, then 20k will be taxed. The amount of tax will depend on your income in the tax year.

So that's it roughly speaking. Advice here www.gov.uk/tax-sell-property

Oh yes, and the reliefs.

You have 3 years to sell after moving out.

I would think u will get away with it as also have a capital gains allowance each to use.
9Gov.uk will have all info and rates.

As it was your main residence and subsequently rented, you will also be entitled to let property relief which can be worth up to 40k

Thanks all. I've tried to do the sums and I think we might get away without paying too much.