Hi
When I met my now wife just over 3yrs ago I lived in a house about 50 miles away. We rented the house for just over 3yrs and I lived with her, in her parents house (though her parents didn't live there). I have just sold the house and am going to invest the money in another property.
It is the only house I have ever owned. The question is would I need to pay CGT and what do I need to tell the tax office?
regards
It isn't clear from what you say.
Did you buy a house and rent it out? If so, you may well have to pay CGT. It will depend on the figures though. If you lived in the house as your main residence for a reasonable length of time before renting it out, then from what you say, any tax bill is likely to be negligible.
Hi
I brought the house in 99 and rented it out from June 03 to July 06. I then moved back for a couple of weeks (to keep the contents insurance up) and sold it early this month.
I made 70K profit (after costs) and would probably come in the higher tax band. It has been the only residence that I've owned.
Thanks for your previous prompt reply.
In message , James writes
eh? did the insurer know you were renting it out?
If you own a house which you live in then no CGT is payable when you sell. If it is rented out then CGT is payable. If you live in it and rent it out then the CGT is apportioned by time, But, if you live in it and rent it out then the last three years of ownership are disregarded in any event. You can apply taper relief for the number of full years you owned it, then apportion the gain according to the time you lived in it (plus 3 years), then deduct the current CGT allowance and the likelihood is you have not CGT to pay.
There is no tax to pay.
There's exemptions for last three years and another three years of non-residence.
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