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capital gains tax on selling property

20/05/2019 10:48:15
My daughter and her husband jointly bought a house in 2001 for 75k. They lived in it for 3 years and then moved to a job where accommodation was provided. From that time they rented out their house until they sold it in 2018 for £175k. Is there any capital gains tax to pay?
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Re:capital gains tax on selling property

20/05/2019 14:22:55
Hi,

Thank you for your question.

The Capital Gain and if any tax will be due is based on whether any reliefs and expenses are due and how much is relievable against the gain.

Tax will be calculated once all reliefs and also expenses are set off against the total gain.

Private residence relief is only available for the period that they were living in the property themselves. There is also a relief available when the property is let.

A more detailed help sheet can be found here:

HS283: Private Residence Relief

This also includes when you are in accommodation provided by your employer.

Guidance on calculating the gain and what reliefs and expenses are claimable can be found at:

Tax when you sell your home
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capital gains tax on selling property

20/05/2019 14:32:48
Potentially. The employer's house would need to have been defined as being for the better performance of the duties. If it was just provided, then CGT could be payable. Letting relief up to the lower of principal private residence or £40K would be available. The reliefs are available to each of them.
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capital gains tax on selling property

21/05/2019 12:43:49
HMRC Admin 13-you have not taken into account the 18 month PPR period. You take the period they lived in it plus 18 months to arrive at the PPR relief.
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Re:capital gains tax on selling property

21/05/2019 12:44:52
Hi,

Thank you for your Comment.

This is correct and all this guidance regarding PPR is included in the link attached to the original reply.
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capital gains tax on selling property

28/05/2019 07:07:42
Many thanks for the comments, I will read up on the links provided.

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