Capital Gains Tax

[annab99]

Hello -finance question - I bought a family home in 2014 but moved out in 2018 to live with my elderly father who has dementia. My house has been rented out since. I anticipate my father moving into care soon and I want to sell my house and buy a new property elsewhere. Because I have rented it out it seems that I will have to pay Capital Gains Tax even though it is the only property I own. Can anyone shed any light on potential reliefs or of this is the case - I can't find the info on the government website.
Thank you

 

[Bunpoots]

Welcome to Dementia Talking Point @annab99

If you moved back to your house to live for a while before you bought a new one I don’t believe CGT would be payable. Is this a possibility for you?

 

[annab99]

Welcome to Dementia Talking Point @annab99

If you moved back to your house to live for a while before you bought a new one I don’t believe CGT would be payable. Is this a possibility for you?

 

[annab99]

It wouldn't be ideal as chidren have outgrown the space - but thanks

 

[Bod]

I believe CGT is payable on the value increase that happened whilst it was rented out.
But check with a specialist accountant.

Bod

 

[MaNaAk]

I believe CGT is payable on the value increase that happened whilst it was rented out.
But check with a specialist accountant.

Bod

I would phone HMRC to confirm.

MaNaAk

 

[Carmenjane]

It's my understanding that you aren't liable for CGT when you sell your house if it's the only property you own and you have lived in it as your main residence at any time that you owned it. Here is a link to the government website:

https://www.gov.uk/tax-sell-home

However, I agree with everybody that the best way to be sure is to phone HMRC or an accountant and tell them your exact circumstances.

 

[nitram]

From @Carmenjane 's link

Private Residence Relief​

You do not pay Capital Gains Tax when you sell (or ‘dispose of’) your home if all of the following apply:

• you have one home and you’ve lived in it as your main home for all the time you’ve owned it
• you have not let part of it out -

...

The Private Residence Relief is reduced by the fraction of time the property is rented out
https://www.gov.uk/tax-sell-home/let-out-part-of-home .

 

[Jessbow]

if you jointly own a propert, I believe you each get an allowance

 

[nitram]

if you jointly own a propert, I believe you each get an allowance

Yes, £12300 each