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We bought a new house back in May and kept the old one on a BTL mortgage - with the situation changing rapidly we decided to sell instead.
We found a buyer and all was progressing well until the Mortgage issues recently caused them to go silent - so we're back on the market.
A thought occurred though - I know I'm due a second property SDLT refund within 3 years, but the primary residence exemption for CGT is now only 9 months.
Question is, what would the CGT be based on?
1> (Value at sale - Value at purchase) x 0.18
2> (Value at sale - Value 9 months after moving out) x 0.18
In other words, does the exemption continue to hold true that the property was our primary residence during the time in which the value increased or 9 months after moving does the exemption cease to exist?
Have you tried this? It's quite a thorough Q&A to get to the final tax bit.
https://www.gov.uk/tax-sell-property/work-out-your-gain
Ah, no I hadn't! Thanks!
I was going round and round various 'help' websites going backwards and forwards working out if I was going to find myself considerably out of pocket... I did find a gov.uk website, but it wasn't that one.
Using that calculator (and importantly the Private Residence Relief guidance) I've been able to work out that any gain should be below the annual allowance threshold.
Assuming I've read the guidance correctly I will qualify for relief based on:
(Value at sale - Value at purchase) x (Months living in property / Months owning property)
Assuming I’ve read the guidance correctly I will qualify for relief based on:
(Value at sale – Value at purchase) x (Months living in property / Months owning property)
Not an expert despite being an accountant. But yes this is the size of it, assuming you have accounted for capital improvements, any lettings relief etc etc.
Assume there's 2 of you as you said we, so 2 x allowance. The govt simulation is v good, don't forget to offset all fees like solicitor, sdlt, agent fees on sale.
You add the gain to your income to see what level you pay cgt at.
Sorry that's all I know about cgt, my bill is eye watering but it's a tax on profit so don't expect any sympathy.