Tax

Lettings relief should be available to reduce the gain dramatically.

Stamp duty and other purchase / sale costs will be available to deduct.

P.s the figures you detail in your post don't quite make sense.

Dear Tony,

I agree with Sean that your figures do not quite make sense here.

On the assumption that this is a property that was your main residence which was subsequently let, then 20 months (last 18 months, plus the 2 months residence) out of 52 (total ownership months) would be your PPR relief, calculated as £120k X 20/52 = £46,154.  Using this same assumption, lettings relief of £40k may be added, giving total reliefs of £86,154.

So if we take your £120k gain, subtract the £86,154, and subtract the annual exemption of £11,300, you are left with a chargeable gain of £22,546, which at the 28% rate of tax is £6,313.

That being said, I am unsure whether your £120k gain you mention takes into account all the typical deductions, such as stamp duty, solicitor fees, estate agent fees etc.   If it does not, then your tax bill could well reduce further.

Hope that gives a brief outline of the position, and if in any doubt, professional property tax advice would be recommended.

Best wishes,

RITA4Rent 

Unfortunately it may be that PPR and letting exemptions are denied if the property was only your residence for 2 months.

omg that would be a bit harsh if its my only house and i sold my original home thats i lived in for years:-(

Exactly what I was going to say.  

2 months.!!

hi thk you for your replies i did contact rita earlier for a brief chat , i mean this is my only home i dont know if i get  lettings relief and if i didnt get PPR am not sure ?

i sold  my original house to move areas and become an accidental landlord really when i decide to move in with my girlfriend and closer to work.

so could i include the fees for the sale of  my original house which was 6 months earlier ? and all the stamp duty and moving fees for new property.  i image the gain would to between 110 and 120 k what would happen if i moved back into the property for 24month would i get an extra 6 months relief ?

the property is 375k or more valued today rented for 1250£ brought for 247.500  , not sure if remorgage to still prduce some income and go halfs with my girlfriend on a new place and buy a flat or few hmos up north or hmo my orignal property , too many questions for my pea brain :-)

https://www.gov.uk/tax-sell-home/let-out-part-of-home

You get full relief for:

• the years you lived in the home.

There may instances of less accepted

You are already on thin ice with PPR

See other cases,

Google - Quality of occupation

give hrmc a call they can help with calculation.

Good luck.

It it works for you let me know. You have just discovered a perfect strategy to avoid CGT