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Ask Your Own Question, Chartered Certified Accountant
Category: UK Tax
Satisfied Customers: 4673
Experience:  FCCA - over 35 years experience as a qualified accountant (UK based Practitioner)
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My wife & I own one house in England (the only property we

Customer Question

My wife & I own one house in England (the only property we own) but live with my father in his house as he requires help due to his age & disability. We have rented out our house for the last 5 years & informed & paid HMRC all required income tax. If we sell the property without living there again will we have to pay capital gains tax on the sale?
Submitted: 6 months ago.
Category: UK Tax
Expert: replied 6 months ago.
Thank you for your question..You may have to pay some CGT on sale.. before this is calculated,you will be entitled to relief against it as follows:- all period covered as main residence would be exempt because of private residence relief- the final 18 months of ownership would be exempt as it has been your main residence at some point during period of ownership- letting relief for period property is let (the maximum relief for this is £40k per owner) Once the above reliefs have been taken, you would claim gains annual allowance (£11,100 per owner current year) and the balance would be taxed at 10%, 20% or a combination of both depending on your total taxable income including the gain in the year.More information on private residence relief can be found on hs283 here I hope this is helpful and answers your question.If you have any other questions, please ask me before you rate my service – I’ll be happy to respond.
Expert: replied 6 months ago.
Hi there, just checking to see if I have addressed your points and/or you need further help/clarification. Many thanks

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