Id like to know how much capital gains tax I will have to…

Hi

From the figures you have given me you have a joint gain of £66000 made over 120 months. As you lived in the property as your principle private residence for 50 months this period plus the last 36 month (as PPR has been established during ownership) will be exempt by time apportionment ie 86/120 x £66000 = £47300 leaving a balance of £18700.

As PPR has been established an exemption for the let period will also apply. This is the lesser of 1) the time apportioned gain relating to the let period less the overlap for the last 36 months ie (70 - 36 =) 34/120 x £66000 = £18700 or 2) the equivalent to the PPR claim £47300 or 3) £40000 per spouse ie £80000. As you will see the lesser figure is £18700 which wipes out the balance of the gain even without you or your wife having to use your annual exemptions of £10100 each.

In your calculation of the gain you can also claim for the legal/purchase/selling costs ie solicitors and estate agent fees, stamp duty etc plus any capital improvements made to the property eg new kitchen/bathroom (if not already claimed against the rental income), extension etc.

If you did have an exposed capital gain your wife would have to pay CGT at the flat rate of 18% and you would pay at 28% as a higher rate taxpayer.

Anyway there is no CGT to pay so I hope this helps.

Kind regards

Andrew (baktax)