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I have owned a house in the UK for 14 years and have rented…

Customer Question
I have owned a house...
I have owned a house in the UK for 14 years and have rented it out for 6 years. It has not been rented from Sept 2009 until April 2010, at which point it was sold. Will I have to pay tax on the capital gain?
Submitted: 8 years ago.Category: UK Tax
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Answered in 14 minutes by:
6/29/2010
UK Tax Professional: Sam, Accountant replied 8 years ago
Sam
Sam, Accountant
Category: UK Tax
Satisfied Customers: 14,354
Experience: 26 HMRC expertise, PAYE, Self Assessment ,Residency, Capital Gains, CIS ask for Sam Tax
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Hi JACUSTOMER

Thanks for your question

Yes capital gains will be a consideration as you sold this property more than 36 months after moving out.

However some of the gain will be exempt to reflect the time you lived there plus the last 36 months of ownership, and also you may be due private lettings relief - as you also rented this out to tenants, which allows up to a further £40,000 relief.

You need to advise HMRC of the sale so they can arrange to issue you with a self assessment tax return and capital gain page - and if the exchange of contracts was prior to 05/04/2010 - then this needs to be declared on the 2010 return that must be sent back to HMRC no later than 31/10/2010 if filing a paper tax return or by 31/01/2011 if filing the return on line. Any tax due - must be paid by 31/01/2011.

If the exchange of contracts took place after 05/04/2010 - then it will be the 2011 return that will need completing - so advise HMRC now so they can arrange to issue you with a 2011 return after 05/04/2011

Thanks

Sam
Sam
Sam, Accountant
Category: UK Tax
Satisfied Customers: 14,354
Experience: 26 HMRC expertise, PAYE, Self Assessment ,Residency, Capital Gains, CIS ask for Sam Tax
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Customer reply replied 8 years ago

Sam

I will need to put together a tax return - can you do that for me? and what would the costs be? I basically need an answer now as to what the tax implications are for this sale in full as I have to plan may other financial issues and this could be significant.

 

Thanks

 

Iain

UK Tax Professional: Sam, Accountant replied 8 years ago
Hi Iain

Thanks for your response

I can help you through Just Answer but you will have to post this as a new question - and pay what you think is reasonable for the work and you can ask for me if you wish me to help you OR you can arrange to see an accountant local to you to undertake this for you, this will cost in the region of £450 - £800 (alot will be dependent on what other income you have for the year)

If you wish me to help, or just wish to know what tax liability to expect from this sale please advise in the new question
1) the month and year property bought and the price paid
2) The incidental costs to purchase - legal fees etc
3) The month and year you moved out
4) The exact date of sale - and the sale price
5) The incidental costs to sell - so estate agent, legal fees etc
6) The costs of any major repairs undertaken on the property
7) Confirm this property was in your sole name

Thanks

Sam
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