The owner of this property in Dover had owned it for 10 years and originally lived in it as a family home for a number of years. The owner then moved out of the property and rented it out for a short time
The tenants moved out of the property causing some damage. The owner then decided to carry out a comprehensive redevelopment of the property. The property had been empty for over five years and works had ground to halt.
The Empty Property Officer met with the owner to discuss his options, including:
- Complete the renovation of the property
- Rent or Sell the property on completion of the work or
- Sell the property in its current condition.
The owner was concerned about his Capital Gains Tax (CGT) liability, if he sold his property and did not have the finance or the will to complete the renovations. Therefore, he was content to leave it empty despite the property costing him money ( Council Tax ) and the property not being insured.
The owners Capital Gains Tax liability was not as bad as he first thought (Please see example below).
On the basis of the information provided, the owner contacted an accountant who confirmed he would have no CGT liability. The owner then marketed the property and sold it to a local developer.
The developer completely refurbished the property within a few months and has now rented the property to a local family, provided much needed accommodation to the area.