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Capital Gains Question
milek
Posts: 27 Forumite
Hello,
Recently I posted in regards to buying a first home,
The property I am looking to buy (with my partner) requires a moderate amount of renovation to become "livable" in. We like the house, the size, and the price but do not like the area.
I was wondering, if we decided to buy the house and of course renovated it to live in, THEN ended up deciding we don't like the area and sold it, would we get charged for capital gains?
I imagine there is no capital gains tax if the house was our main house for a certain amount of time, but how quick could you sell without getting charged capital gains?
Is there a weblink to info in regards to this particular circumstance and rates?
Thanks
Recently I posted in regards to buying a first home,
The property I am looking to buy (with my partner) requires a moderate amount of renovation to become "livable" in. We like the house, the size, and the price but do not like the area.
I was wondering, if we decided to buy the house and of course renovated it to live in, THEN ended up deciding we don't like the area and sold it, would we get charged for capital gains?
I imagine there is no capital gains tax if the house was our main house for a certain amount of time, but how quick could you sell without getting charged capital gains?
Is there a weblink to info in regards to this particular circumstance and rates?
Thanks
0
Comments
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You would have to actualll live there as your main residence (ie move, change all your addresses, bills, electoral role, etc such that it can me demonstrated to be your main residence). There is no specific time to establish residence but it has to be a real move you can prove not just a paperwork exercise.0
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You would have to actualll live there as your main residence (ie move, change all your addresses, bills, electoral role, etc such that it can me demonstrated to be your main residence). There is no specific time to establish residence but it has to be a real move you can prove not just a paperwork exercise.
Ahh, I see,
So basically, all whoever concerned (in regards to capital gains) wants to know when you are selling is that ive actually lived there, in which, my residence on insurance would be changed to there, bills, electoral role etc like you said?
So There would be no capital gains tax if i sold (or rather moved house) after a year of actually living there for instance?0 -
The HMRC website should explain it in detail. However it is generally that a property is exempt from CGT for the time it was your principal primary residence, and if it was your PPR at any time it is also exempt for the last three years of ownership (there are some exceptions to this). Also the buying and selling costs are deductible as are the capital costs spent on the property. Then the owner will have their annual allowance before having to pay any tax on the gain.Don't listen to me, I'm no expert!0
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