Sell my newly owned house within six months?

Shawn_Dark

I've been told that if I sell my house within six months of living in it I could be liable for some sort of government tax at around 20%.

Is this true?


Facts:

1) I bought my house from my father in July last year (when I moved in).
2) It was agreed that payments would be deferred until January 2014.

So... I now wish to sell my house for numerous reasons (e.g. it's too small, growing family, too far from family, friends and work, etc.).

Even though I've been living in my house around nine months it legally became mine around November or December (I think - the solicitor/legal process was a bit confusing). So I'm guessing it would be safe to sell the house around June or July.

Can anyone explain the above mentioned tax situation? Is it a case of I can't sell it within six months of living in it or I can't even advertise it for sale?

Kayalana99

Im not sure but if thier is a 20% tax it will be on any profit you make not on the whole house...

That saying I dont no if this 20% exists but I do know they wouldnt just charge you 20% of the property it would only be on the profit.

& if thier was a 6month they would still allow you to put propety up for sale , it would matter on when you sold it not actally putting it up with an EA

marathonic

I'm not too sure about the tax situation but I do know that the potential buyer could have trouble securing a mortgage if the seller hasn't been the legal owner for 6 months - I faced this hurdle when buying last year.....

Shawn_Dark

I'm planning on selling it quickly so it'll be cheaper than what it's actually worth.


My main concern is the technicality of the actual sale date.

I am planning on putting it up for sale around early July (this would equal living in the house for almost one year and legally owning it [i.e. by name] for six and a half months).

I just don't want to sell it and get some sort of tax because it was less than six months (and a couple of days short would be a real sting!).

Kayalana99

Abu_Yoosha wrote: »

I'm planning on selling it quickly so it'll be cheaper than what it's actually worth.

I just want to point this out it doesnt matter if your selling it cheaper then its worth its what you paid your Dad for it that matters...I.e if he gave you for free and capital gains tax did apply you would pay 20%.

If you brought it of Dad for 100k and sold it for 80k you would pay nothing of the tax.

Again I am not sure if this tax exists maybe someone can clear that up. :rotfl:

Shawn_Dark

Kayalana99 wrote: »

I just want to point this out it doesnt matter if your selling it cheaper then its worth its what you paid your Dad for it that matters...I.e if he gave you for free and capital gains tax did apply you would pay 20%.

If you brought it of Dad for 100k and sold it for 80k you would pay nothing of the tax.

Again I am not sure if this tax exists maybe someone can clear that up. :rotfl:

He bought the house something like 30 years ago!

Kayalana99

But you brought it off your Dad? This isnt about your Dad because he has sold it already

Did you not pay anything for it?

marathonic

Abu_Yoosha wrote: »

He bought the house something like 30 years ago!

It doesn't matter what he bought it for, what did YOU buy it for? That's the basis on which your tax will be calculated.

His tax will depend on whether it was his principal residence for the full time he owned it, or a certain period during ownership.

Kayalana99

Abu_Yoosha wrote: »

I am planning on putting it up for sale around early July (this would equal living in the house for almost one year and legally owning it [i.e. by name] for six and a half months).

After your buyer has put an offer in it generally takes 6 weeks to complete.

This is all moot point as you will have been living thier 6 months by then anyway and as I said before its your sale date not when you put it on market.

Dont worry about it. :j

Shawn_Dark

Kayalana99 wrote: »

But you brought it off your Dad? This isnt about your Dad because he has sold it already

Did you not pay anything for it?

I agreed a price (e.g. £60k) but like I said, I wont start paying until 2014.

Kayalana99

Sorry I thought it was this Jan, not sure how this would all work then but you would of legally owned it 6months at the time of sale.