Rented out - now want to sell

M

me!

Guest
I rented my home out in May 2005 for a year (but kept a room) as I was unsure whether to sell it in case I was going to move back into it at a later date. I've owned it for more than 5 years prior to renting (primary residence etc) so the stamp duty doesn't come into it I think.

The tenant is still there now but I've decided I want to sell after Christmas or when the tenant leaves - I'm easy. Can I ask what the tax implications are for me in relation to CGI and tax in general? Does the 20% CGT tax apply for any value increase from May last year?
 
CGT will apply for the period between May 2006 (12 month grace period) and when you sell. CGT will be calculated as a proportion of the total increase versus this, currently small, time period relative to total period owned.

Example always works best:

If you sell in May 2007 400K and you bought in May 2000 for 200K you then owe 20% of 1/7 of 200K = 5,714 less allowable expenses.

If you sell in Nov 2006 400K and you bought in May 2000 for 200K you then owe 20% of 1/14 of 200K = 2,857 less allowable expenses.
 
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