CGT Rented House sale computation

CGT Rented House sale computation

Didn't find your answer?

Thank you in advance.

House purchased 01/09/1999
a) PPR 01/09/99 to 31/05/04 (57months)
b) Rented 01/06/04 to 31/05/07 (36 months)
c) Empty 01/06/07 to 05/11/07 (5 months)
Sold 05/11/07 (total ownership 98 months)

Cost 110,000
Sold 187,000
Profit 77,000

Exempt = all of (a) and (c) and 31 months of (b) = 93 months.

So taxable is (98 - 93) = 5 months. So, 5/98ths = 77,000 / 98 * 5 = £3,928.57

This would be then reduced to nil due to the £40,000 limit? Is that correct?

Thank you so much for you help and comments. I have not done this for a while.
Paul

Replies (4)

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By User deleted
05th Dec 2008 07:56

Yes and No
There is no Letting Relief available as the the rental period is within the 36 months PPR exemption and is treated as though it is still your residence. However there is still no CGT due as you can use your CGT allowance. Here are the real figures :
Capital Gains Summary

Purchase Price £110,000 01/09/1999
Indexation 0.000 £110,000
Legal Fees £0
Sale Price £187,000 05/11/2007
Enhancements £0
Legal Fees £0
Gross Gain £77,000
PPR Relief £73,071 £3,929
Letting Relief £0 £3,929
Taper Relief 30% £2,750
CG Allow'ce 2 £9,200 -£15,650

Note: as this property was sold last FY then taper Relief applies.

Regards Peter

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By pawncob
04th Dec 2008 18:50

the only benefit
They each get £40000 relief.
It's the only benefit of marriage these days.

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By User deleted
04th Dec 2008 15:08


Thank you so much. I really appreciate it.

Does the £40,000 apply to a husband / wife each, or per property (jointly owned).

Thanks again. You made my day!

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By geoffwolf
04th Dec 2008 12:04

your view
and reasoning is spot on

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