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Advise on Capital Gains Tax if you don't live in the place you're selling?
Sharon333
Posts: 6 Forumite
Hi Guys
Can anyone shed light on the minefield that seems to to be CGT? I have a property which is near exchange & completion -I am selling it for the same price I bought it for in 2004. I lived in it until mid 2006, though it is not my main residence now, I currently rent a house with my husband in another part of the country. The property being sold has been empty since July 2009, and I have been paying the mortgage on it it as well as the rent on the place I live in - before that I did rent it out, but not out of choice, the market has been so bad it was rent it or lose it! - do I still have to pay CGT now that a sale is going through? I did not tell the lender I was renting it out, hoping it would only be short term and I could then sell it, so all paperwork show it being a residential buy as that is what it was when I bought it. I don't see that I am making any money, as I am selling it for what I bought it for, and especially as I have used all my savings (which would include any paltry amount made from rental income) paying the mortgage while the sale(s) have gone through - but am I being naive? Thx!
Can anyone shed light on the minefield that seems to to be CGT? I have a property which is near exchange & completion -I am selling it for the same price I bought it for in 2004. I lived in it until mid 2006, though it is not my main residence now, I currently rent a house with my husband in another part of the country. The property being sold has been empty since July 2009, and I have been paying the mortgage on it it as well as the rent on the place I live in - before that I did rent it out, but not out of choice, the market has been so bad it was rent it or lose it! - do I still have to pay CGT now that a sale is going through? I did not tell the lender I was renting it out, hoping it would only be short term and I could then sell it, so all paperwork show it being a residential buy as that is what it was when I bought it. I don't see that I am making any money, as I am selling it for what I bought it for, and especially as I have used all my savings (which would include any paltry amount made from rental income) paying the mortgage while the sale(s) have gone through - but am I being naive? Thx!
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Comments
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Capital Gains Tax - If you are selling for the same price as you paid for it then what have you gained that can be taxed?
Any rental income should have been declared to the tax man during the tax year you earned it, the same as any income. If you havent declared it and the tax man finds out you could be in serious trouble for tax evasion.:jProud mummy to a beautiful baby girl born 22/12/11 :j0 -
As it has been your home, there are reliefs that would reduce the CGT liability, but the bottom line is no gain = no capital gains tax.I'm a Forum Ambassador on the housing, mortgages & student money saving boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Forum Ambassadors are not moderators and don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com (it's not part of my role to deal with this). Any views are mine and not the official line of MoneySavingExpert.com.0
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Hi Guys
Can anyone shed light on the minefield that seems to to be CGT? I have a property which is near exchange & completion -I am selling it for the same price I bought it for in 2004. I lived in it until mid 2006, though it is not my main residence now, I currently rent a house with my husband in another part of the country. The property being sold has been empty since July 2009, and I have been paying the mortgage on it it as well as the rent on the place I live in - before that I did rent it out, but not out of choice, the market has been so bad it was rent it or lose it! - do I still have to pay CGT now that a sale is going through? I did not tell the lender I was renting it out, hoping it would only be short term and I could then sell it, so all paperwork show it being a residential buy as that is what it was when I bought it. I don't see that I am making any money, as I am selling it for what I bought it for, and especially as I have used all my savings (which would include any paltry amount made from rental income) paying the mortgage while the sale(s) have gone through - but am I being naive? Thx!
Makes me wonder if you told the tax man about your rental business if you didn't tell your lender? If you didn't, you may well have some tax to pay on your rental profits.I can take no responsibility for the use of any free comments given, any actions taken are the sole decision of the individual in question after consideration of my free comments.
That also means I cannot share in any profits from any decisions made!;)0
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