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Sell off property or BTL??...
nknash
Posts: 24 Forumite
Hi,
I dont know what I should do for the best! I am looking to purchase a new home and was originally going to let my current property out so that I could keep hold of it and hopefully gain equity in the property. I am now wondering if I might do just as well to sell the property in case the property market takes a dip what with all the current speculation.
I would love anyones views as to what they think?.... Thanks!
I dont know what I should do for the best! I am looking to purchase a new home and was originally going to let my current property out so that I could keep hold of it and hopefully gain equity in the property. I am now wondering if I might do just as well to sell the property in case the property market takes a dip what with all the current speculation.
I would love anyones views as to what they think?.... Thanks!
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Comments
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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,
I dont know what I should do for the best! I am looking to purchase a new home and was originally going to let my current property out so that I could keep hold of it and hopefully gain equity in the property. I am now wondering if I might do just as well to sell the property in case the property market takes a dip what with all the current speculation.
I would love anyones views as to what they think?.... Thanks!
Really depends on what time scale you are thinking about.
If property prices take a downturn this year and bottom out in 5 years time you could then see a another cycle that takes prices back up to current prices in 10 years from now. After that if they rose sensibly you would gain equity. Not sure why people love being in debt though.0 -
You have three years in which to decide. As long as you sell the original home before three years is up you do not have to pay Capital Gains Tax.0
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pbradley936 wrote: »You have three years in which to decide. As long as you sell the original home before three years is up you do not have to pay Capital Gains Tax.
What happens if you move back in after the three years then sell it?0 -
What happens if you move back in after the three years then sell it?
Nothing.
CGT exemption is for the time it was your PPR and the last three years of ownership. There are other reliefs available, including taper relief, letting relief and each individual has a CGT allowance of £9,200.
Of course you can sell after the 3 years is up but you may have a CGT tax bill.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 -
Nothing.
CGT exemption is for the time it was your PPR and the last three years of ownership. There are other reliefs available, including taper relief, letting relief and each individual has a CGT allowance of £9,200.
Of course you can sell after the 3 years is up but you may have a CGT tax bill.
So if you rent out your house for more than 3 years then move back into it you are exempt from CGT if you then decide to sell?0 -
I'm pretty sure HMRC would take a dim view of it, though not sure what they can do.So if you rent out your house for more than 3 years then move back into it you are exempt from CGT if you then decide to sell?"Mrs. Pench, you've won the car contest, would you like a triumph spitfire or 3000 in cash?" He smiled.
Mrs. Pench took the money. "What will you do with it all? Not that it's any of my business," he giggled.
"I think I'll become an alcoholic," said Betty.0 -
It is only the last three years of ownership that are exempt from CGT when you have previously lived in your property. So moving out then moving back in doesn't really help you, if the 3 years renting it are not the last 3 years you won't get full CGT exemption.
There are a few allowances to reduce the tax liability, so all is not lost.
Anyway of you are making megabucks on the sale, you can afford a bit of 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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