Capital gains tax

[Mrs C]

Are there any friendly accountants out there?

We bought our current home 10 years ago, but couldn’t sell our previous property in time so rented it out. We are now considering selling our previous home but want to know what the capital gains tax will be. I believe the tax is only on the gain during the time when it was rented.

I can’t find how you would do a valuation of a property in the past when it wasn’t actually sold? Does anyone know how HMRC validate the valuation?

Thanks

 

[Blackswanwood]

Hi - it’s explained here
https://www.charcol.co.uk/guides/capital-gains-tax-guide/

 

[Cabinetman]

It’s not as simple as may be imagined sometimes, there are allsorts of ways to reduce the tax due – all legal, you just need to know about them, I seriously recommend getting a professional to help. I also seem to remember that your particular circumstances bring other rules to bear. Ian

 

[Mrs C]

Thank you both

 

[akirk]

Roughly:
Gain from when you bought to when you sell
Pro-rata for the time rented
So lived in 10 years and rented 10 years - capital gains on 50% of overall gain
The value at point of rental is irrelevant
You also have a number of additional months you can claim as being in it plus a whole load of allowances - as others say- any complications - get an accountant!

 

[gregmcateer]

We're in pretty much that position. Other posts point you to right place to start calculation, but I would say DEFINITELY pay an tax accountant to help. Easily saved what you spend on them.

 

[NikNak]

Been there, done that. Both excellent advice above