ChatterBank31 mins ago
Capital Gains Tax on a property I own while renting elsewhere
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Hi. I acquired a property about 12 months ago which I have been renovating while renting a room in a friend's house. I now wish to sell the property. Am I eligible for capital gains tax even though it is the only property I own?I have a feeling I have to live in the property to be exempt but that doesn't seem to make sense if I only own that one and no other! I also have NOT been working or earning for the last 6 months but have also NOT been claiming any benefits. Does this affect my case? Thanks in advance for your help!
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The first year of ownership is always regarded as occupation. So provided you move into it now until you sell you will be exempt.
http://www.taxationweb.co.uk/capitaltaxes/arti cle.php?id=186
has some useful info
The first year of ownership is always regarded as occupation. So provided you move into it now until you sell you will be exempt.
http://www.taxationweb.co.uk/capitaltaxes/arti cle.php?id=186
has some useful info
I am pretty sure that the first 12 month exemption only applies if you do actually move into the house, so unless you move in it will not apply to you. It is an addition to the normal Principal Private Residence Relief, so if the house never actually becomes your PPR then the 12 month exemption cannot apply. However, as has been pointed out before, you are allowed to deduct the cost of any improvements to the property, and you have an annual exemption of �8800 to deduct from the gain so you may find the chargeable gain is not that great.
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