A Landlord has recently asked us:
“I am currently selling a property that I have been renting out for a number of years. It is a house that i have lived in prior to renting it and i do not own any other properties. Do I have to pay tax on the sale given that it is the only property I own”?
Capital Gains Tax will be payable when you sell this property, if you make a gain over and above £12,300 being the annual CGT allowance you are entitled to. However, you will be able to claim principal property relief for a period you lived in the property and the last 9 months of ownership. You will be able to include expenses associated with the purchase and sale as well as any capital costs you’ve incurred for refurbishment etc which will reduce the gain.
We hope the above is a useful guide, However we would always recommend you speak to an accountant or tax expert.
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