ubuntu Posted September 7, 2020 Share Posted September 7, 2020 (edited) https://www.theguardian.com/money/2020/sep/07/rented-out-home-how-much-cgt-price Found this interesting on how deluded this landlord is with regards to CGT liability, not sure if genuine or just made by story by the journalist Quote Q We are in the process of selling our former family home which has been rented out for the past eight years. We lived there from 1987 until 2012. The value of the house increased from the £91,500 we paid for it in 1987 to £325,000 in 2012, but has gained only £5,000 since then as we have just accepted an offer of £330,000. As there has been little appreciable gain in price during the time it was let, how is the actual gain calculated? I have assumed that we only pay capital gains tax on the £5,000. IE Edited September 7, 2020 by ubuntu Quote Link to comment Share on other sites More sharing options...
msi Posted September 7, 2020 Share Posted September 7, 2020 Smells fishy Quote Link to comment Share on other sites More sharing options...
Si1 Posted September 7, 2020 Share Posted September 7, 2020 To be filed under 'I lost money as an amateur landlord please help' Quote Link to comment Share on other sites More sharing options...
scottbeard Posted September 7, 2020 Share Posted September 7, 2020 1 hour ago, msi said: Smells fishy What smells fishy about this? It seems like quite a well explained example to me of how CGT works if you have had a house that you lived in for some of the time and rented out for the rest of the time? Quote Link to comment Share on other sites More sharing options...
iamnumerate Posted September 7, 2020 Share Posted September 7, 2020 Interesting comment. Quote This is a salutory lesson. The tax regime is such that nobody should even think about keeping a former residence, for whatever purpose, unless: - it has not risen much in value since purchase - they are intending to return to it in the near future, - if rented, the return is reasonable after all expenses, including unwarranted CGT during the rental period - they can guarantee a local house price boom in the near future. In this case a boom means faster than historical growth. I would add for more than 18months (as it takes time to sell but you have 3 years before you pay CGT). Quote Link to comment Share on other sites More sharing options...
captainb Posted September 7, 2020 Share Posted September 7, 2020 14 minutes ago, iamnumerate said: Interesting comment. I would add for more than 18months (as it takes time to sell but you have 3 years before you pay CGT). 9 months thesd days free from cgt at the end not 18. Also cgt is payable in cash of course no later than one month post sale Quote Link to comment Share on other sites More sharing options...
iamnumerate Posted September 7, 2020 Share Posted September 7, 2020 1 hour ago, captainb said: 9 months thesd days free from cgt at the end not 18. Also cgt is payable in cash of course no later than one month post sale Thanks for that. Quote Link to comment Share on other sites More sharing options...
richmondtw Posted September 7, 2020 Share Posted September 7, 2020 3 hours ago, scottbeard said: What smells fishy about this? Someone owns a house so he has to be a troll - they are the rules Quote Link to comment Share on other sites More sharing options...
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