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Help - Tax Implications on sale of sole property/part rented


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Hello

 

I am trying to work out if I may have a CGT liability coming up upon selling my house.

 

I bought the property 15 years ago.

Renovated for 2 years.

Rented the whole house out for next 1 year.

Then lived in it for 1 year.

Since then, 9 years, I have either done short rents - anything from a few weeks up to 6m - and around that rented rooms whilst living in it.

 

I have filed Self Assessment tax returns each year, including either Rent a Room page or the Land & Property page with the property income, less expenses and relevant % deduction of the interest only mortgage for my benefit of living in the property.

 

It is the only property I own.

 

When I rented the whole house out it tended to be around holiday time and if longer we stayed in a friend's place for free.

 

The property was also bought on a short lease.

After 14m of negotiations I have just finalised terms to buy the freehold.

It is now my intention to sell the property.

But I am nervous if I may have a CGT liability.

The value on the short lease is low. The value on the new freehold is very high.

There is a huge difference in the value of the property now compared to 15 years ago. I aim to sell it on the freehold / high value rate.

 

As the property is my only property / sole residence will I have a CGT liability?

And if so, how would I work it out - on the short lease value? or on the long lease / freehold value?

 

Also - for how long - without any rentals - would I have to reside in the property to not incur any CGT liability?

Or am I not due any CGT anyway as it is my only property?

 

Would be most grateful for advice.

Many thanks

HP

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