Managing capital gains
I bought a flat in 1983 for £25,000 and have not lived in it for 32 years since. I think the flat is now worth in the region of £385,000. How much capital gains tax would I pay if I sold at this price? Is there any taper relief or exemption that could reduce the CGT bill?
(via email)
Jackie Hall, Tax Partner at Baker Tilly, writes: "As you have not lived in the property at any stage you are not eligible for any form of private residence exemption. You will be taxable on the increase in value, ie £360,000. If you have carried out any capital works on the property over the years, such as structural alterations, the costs of these could also be deducted from your gain.
"If you have any brought-forward capital losses or capital losses arising in the same tax year these could be set against your gain.