Renting for military reasons

Renting for military reasons

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Hi there,

We have had to rent out our property as my husband was posted to a regiment at the other side of the country.

Are we still taxed in the same way as if we bought the property under buy to let? What about when we sell the property, do we pay CGT but adjusted for the time period we were not living there?

Many thanks.

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By johngroganjga
24th Oct 2014 16:28

Yes you are taxed on the rental income in the same way as you would have been if you had never lived there - if that is what you mean by "taxed in the same way".

I think you should meet the requirements for the period of absence to be job-related, so that it is treated as a period of living in your own property for CGT purposes.  You would get CGT relief for the periods you actually lived there in any event.

If I am not right about the job-related aspect, you will be entitled to lettings relief which will cover gains of up to £40,000 each attributable to the period of letting.

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By King_Maker
24th Oct 2014 17:22

If  job related accommodation

If  job related accommodation relief  does apply (very likely), the property will be exempt from CGT.

Have you read HMRC's Help Sheet HS283 on the subject (page 5)? http://www.hmrc.gov.uk/helpsheets/hs283.pdf 

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