Hi All,
I would just like to double check my maths on potential CGT.
We bought and lived in our house for 102 months.
Then we moved out to a new house and rented the old one for 37 months.
(assuming we sell in May 14)
Gain is expected to be 125000.
Initially I scared myself to death thinking that would all be due CGT but after reading posts here I think I work it out to be none.
So total ownership period is 139 months.
PRR is time we lived there plus 18 months as a ratio:
((102 + 18)/139)*gain =£107,913
remaining gain:£17,087
Then deduct the letting relief (if it's the lowest value)
time we rented less the 18 months as a ratio:
((37-18)/139)*gain=£17,086 (thats an odd coincidence!)
remaining gain: £1!
Less personal CGT allowance £10,900.
-£10,899 No Tax to pay!
Have I got that right?
I struggled to find anything about letting relief on the hmrc site...
I would just like to double check my maths on potential CGT.
We bought and lived in our house for 102 months.
Then we moved out to a new house and rented the old one for 37 months.
(assuming we sell in May 14)
Gain is expected to be 125000.
Initially I scared myself to death thinking that would all be due CGT but after reading posts here I think I work it out to be none.
So total ownership period is 139 months.
PRR is time we lived there plus 18 months as a ratio:
((102 + 18)/139)*gain =£107,913
remaining gain:£17,087
Then deduct the letting relief (if it's the lowest value)
time we rented less the 18 months as a ratio:
((37-18)/139)*gain=£17,086 (thats an odd coincidence!)
remaining gain: £1!
Less personal CGT allowance £10,900.
-£10,899 No Tax to pay!
Have I got that right?
I struggled to find anything about letting relief on the hmrc site...