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| *Ostroff, Fair and Company>>>United Kingdom Taxes |
If I rent out my sole resedenice in the uk which I have own for 10 years and then sell it after renting it? |
out would i have to pay capital gain tax. The property cost 拢120,000 and will be sold for 190,000 it is jointley owned? This can be a tricky area. Generally you would not need to pay CGT on the sale of your own property because of principal private residence (PPR) relief. There are various other reliefs where the property is not your PPR for a period, the relevant one to you will be lettings relief. You can find the legislation in TCGA 1992. One other useful thing to know is that you can do whatever you like with a property for the 36 months immediately before you sell it without creating any CGT liability. This means that if you rent the house out for less than 3 years and then sell it you have nothing to worry about. Furthermore, if the property is jointly owned you are looking at a capital gain of only 拢35k each based on your figures. Your worst case scenario is that this 拢35k gain is pro-rated in proportion to the time you lived in the house relative to the total ownership period. Your personal CGT allowance is around 拢9k so this may be sufficient to negate your liability entirely. For more detailed advice you should contact a qualified tax adviser (I am only a trainee!) very full answer from henners. One further point depends on whether you are resident in the UK. |
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