UKC

I'm lead to believe that relief for capital gains tax (currently £11,000) only applies to the year you dispose of an asset. So if you ought something for £100,000 20 years ago and sell for £150,000 this year you need to pay tax on £39,000. Is this correct as, in this example, the asset has barely kept pace with inflation?

In reply to Tyler:
Ash,

If we are talking about your house the no. If a personal property you've lived in throughout then no CGT payable. If rented out then taper relief applies and the number of years is brought into the calculation.

Other assets ie shares are treated differently.

Go here to find out how whichever asset you are selling might be treated https://www.gov.uk/topic/personal-tax/capital-gains-tax

Simon

In reply to shark:

It is a house, rented out some of the time, primary residence the rest. I understand the taxable capital gain is for the years it were rented out only but wondered if there is £11,000 relief for each of those years or just once.

In reply to Tyler:


No the annual relief is used up each year and applies to the gain (sale) made in that year. The calculation would be made on the theoretical gain for the proportion of years it was rented and taper relief for the number of years It is unlikely that you would end up paying any CGT.

In reply to Tyler:

This article might help

http://www.thisismoney.co.uk/money/experts/article-2650656/We-moved-family-...

In reply to shark:
Thanks Simon, we're off to see an accountant in an hour but I wanted to have a rough idea myself . I'd seen various pages on the gov website but somehow contrived to miss the one you linked to it seems the best thing would have been to sell three years after moving out My main problem is that it went up significantly in value while I lived there and did some work on it and very little since moving out but I'm not sure I can prove to HMRC that that is the case and they might just try and divide the CG by the number of years I owned it which would not be representative.

In reply to Tyler:


a professional valuation from a surveyor can be back dated and can show the dates when value increased. Or you can do the work yourself using various websites that list all the prices paid for house in your area through the years. If you have the receipts still from the work you did, even better. HMRC aren't unlikely to dispute a well worked out and reasonable figure.