Capital Gains Tax

CLAPTON

Chippet wrote: »

That is how i understood it. How long do you need to live in the house for before avoiding the tax? Say could he move in for a few months and then sell?

The situation is that your PPR..(principal private residence) is exempt from CGT i.e. if you always have lived in a property then, when you sell there is no CGT to pay (the usual situation for most owner occupiers)

if you only live in the house for part of your ownership then the period of PPR plus the last three years is exempt

There is no specific period of residence to make somewhere your PPR ..it depends upon the quality of your residence.
so if you have registered all your finances, bills etc at the address then the HMRC will generally view this as being your PPR


however in this case there may anyway be no cgt to pay depending upon the buying / selling price as for my first post

VIGILANT22

"he bought it fairly cheaply" from grandad.....hope this wasn't for avoidance of care home fees!

Chippet

VIGILANT22 wrote: »

"he bought it fairly cheaply" from grandad.....hope this wasn't for avoidance of care home fees!

not that is this particularly relevent to my question, but no he is living with his son

Chippet

CLAPTON wrote: »

if he doesn't live in the house then he will be liable to CGT when he sells

the cgt will be based on the difference between the
selling price
less the buying price
less the cost of buying/selling
less the cost of 'improvements'

plus he gets an CGT allowance of 10,100
then he pays 18% of the net profit.

this may of course change in the future

Thankyou, it maybe won't be as much as we thought then, once we take into account all those things. Bad enough enough, we could have done with that extra money as we are both on low wages