CGT again

comports

Hi All,

I would like some advice on whether CGT will apply to me and what relief I can get.

I was divorced and I owned my own house in Essex (via mortgage) for around 15 years where I had my children at weekends. I got a job in Manchester and stayed with a girlfriend there for 4 years but after splitting up I bought a house up there to live in while working but kept my house in Essex and came back every weekend to have my kids. After 2 years I sold the House in Manchester and came back to the house in Essex as I now work from home. I then sold my house in Essex and bought another one.

Will I have to pay CGT on the Manchester home even though i lived there during the week for work purposes. It did make some profit but I only had it for two years..?

Any advice help to avoid tax's would be greatly appreciated

Many Thanks
Ashley

silvercar

when you own two homes you have the option to declare one to be your PPR. I don't know if you can do that retrospectively. If you can then declaring the manchester one to be your PPR while you owned it would mean no CGT to pay on its sale.

If you had declared that one, then there would have been some CGT liability for your Essex home, presumably you've now sold it without making a CGT declaration so thats done and dusted. In which case it is probably best to let sleeping dogs lie and leave the Essax one as your PPR throughout.

So for the Manchester one, look at the difference between buying and selling price, less solicitors costs, estate agents fees and mortgage arrangement fees, surveys.....

2006-07 CGT allowance was £8,800.