laverda Posted November 3, 2007 Report Share Posted November 3, 2007 can anyone explain how lettings releif works and capital gains tax releif as i am trying to work out tax due on the sale of a buy to let property as i understand this will be changing from april to a fixed 18 per cent capital gains tax thanks Link to comment Share on other sites More sharing options...
plym77 Posted November 5, 2007 Report Share Posted November 5, 2007 Lettings Relief is the lower of: a) the capital gain left in charge after PPR exemption (but before taper etc) the PPR exemption c) £40k per owner Letting Relief is available for property which at one point was PPR and has also been let at at some point as a BTL So for example, assume you had a property which made a gain of £90k and you lived in it for 1 year as your PPR. I have also assumed that you are the only owner. On this basis the lettings relief would be £36k, leaving £18k in charge after taking PPR and Lettings Relief in to account I hope this helps Regards Sherena Link to comment Share on other sites More sharing options...
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