Hi stephanie_mccahill McCahill,
There is a possibility of a capital gains charge.
When the disposal completes, you would take 50% of the disposal value and from this, deduct, 50% of the acquisition cost and 50% of acquisition / disposal costs, such as solicitor , estate agent fees.
You can then apply private residence relief, which is the number of months the property was your main resident over the number of months you owned the property.
This fraction give a deduction to take from the gain.
If you still have a figure above £0.00, you can set your annual exempt allowance for capital gains, this year it is £3000.
If you still have a positive figure, you have a gain that is taxable.
Please have a look at the helpsheet for private residence relief here:
Private Residence Relief (Self Assessment helpsheet HS283).
There is a capital gains calculator here:
Tax when you sell property
To help you work this out.
You can move on to the next sections and register for a capital gains account, which you can use to report and pay any gain.
Please note that if you do have capital gains tax to pay, you have 60 days from the completion date, to report and pay the Capital Gains Tax.
If no capital gain arises, there is nothing to report.
You can keep a copy of the calculation on your computer for future reference.
Thank you.
