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Can I avoid Capital Gains tax by selling a second property?
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Where would we stand if I lived in one property and my husband lived in the other on a permanent basis?An average day in my life:hello: :eek::mad: :coffee::coffee::coffee::T
:rotfl: :rotfl: 
:eek::mad: :beer:
I am no expert in property but have lived in many types of homes, in many locations and can only talk from experience.0 -
You cannot have one home each (if you are married you must share the PPR but you can use each other's allowance). However if you are divorced or in the process of it all then you would both be entitled to a PPR but then you could not use the other person's allowance. All the financial implications should be looked over by a solicitor if you are getting divorced. Usually the matrimonial home will be the PPR.0
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Since you are married, I don't think that arrangement helps unless you are divorcing and will be selling after the divorce settlement. Even then, I think you need advice on whether HMRC would accept that.CCStar wrote:Where would we stand if I lived in one property and my husband lived in the other on a permanent basis?A house isn't a home without a cat.
Those are my principles. If you don't like them, I have others.
I have writer's block - I can't begin to tell you about it.
You told me again you preferred handsome men but for me you would make an exception.
It's a recession when your neighbour loses his job; it's a depression when you lose yours.0 -
To be honest, what you are asking is not how to avoid CGT ( which is legal ) but how to EVADE it ( which isnt ! )
If you are buying a property with the sole intention of doing it up and selling at a profit, then you are liable for tax. You will be operating just like any other business, and will have to pay some amount of tax on the profit you make.
Its all well and good people suggesting ways you can try and get around it, but they arent the ones taking the risk, and they arent the ones who will have to pay your fine or do the prison time if the taxman catches you.
The Inland Revenue are VERY savvy to people trying to wriggle out of CGT as lots have tried it over the past few years as everyone wants to be a property developer - they arent stupid, and will know straight away if you are trying to get around it.
As an interesting aside, did you know that if you pay in above a certain amount into your bank account ( like you would if you sold a house ) your account gets flagged and the IR are automatically notified ? Worth thinking about if you are planning on evading tax.
The other side of the coin is - why should you be able to make profit and NOT pay tax ? the point of paying tax is that you are contributing to the UK economy. If it is OK for one person to earn money and not pay tax, then why dont we all do it and work on the side for cash in hand and not declare it ?0 -
CCStar wrote:Where would we stand if I lived in one property and my husband lived in the other on a permanent basis?
On some days quite happy, on other days heading towards separation, if you ask me!Annual income twenty pounds, annual expenditure nineteen nineteen and six, result happiness. Annual income twenty pounds, annual expenditure twenty pounds ought and six, result misery0 -
If you only own one property as your home how long do you have to live there before you can sell it and not pay CGT?0
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Do you mean "if I live in a property and claim it as my PPR, how long will I have to live there to convince the revenue that it is my PPR"? If so, 9-12 months is the guide from my source.amsutt98 wrote:If you only own one property as your home how long do you have to live there before you can sell it and not pay CGT?
Otherwise, no time at all, provided you can convince the revenue that you did not buy it with the intent of making a profit.A house isn't a home without a cat.
Those are my principles. If you don't like them, I have others.
I have writer's block - I can't begin to tell you about it.
You told me again you preferred handsome men but for me you would make an exception.
It's a recession when your neighbour loses his job; it's a depression when you lose yours.0 -
I am so shocked that you cannot share PPR with your husband - that better not be the case on I am straight off to the divorce courts
We have maintained separate houses since before we were married so it seems totally unfair that I would be suckered for tax when I sell????
Does anyone know the facts on this one?
G0 -
Gem_ wrote:I am so shocked that you cannot share PPR with your husband - that better not be the case on I am straight off to the divorce courts
We have maintained separate houses since before we were married so it seems totally unfair that I would be suckered for tax when I sell????
Does anyone know the facts on this one?
G
Yep it's right. The PPR exemption is for your main home. If you are married and not separated, you and your spouse are assumed to share a home in the eyes of the CGT law. Of course you still have PPR exemption for the time you lived in the home and 3 years thereafter and will have lettings relief if you're renting it out.0 -
Oh yes if you are married you must share PPR but you can use his allowance - so if you decide to sell next week and it all goes through you will have:-
8800 x 2 = 17,600 before you pay capital gains tax.
If that were not the case every couple would have two homes as a tax dodge!0
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