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Selling rented main residence
ae179s
Posts: 3 Newbie
I currently own a house purchased in 2001. I lived there for 3 years then i rented it, i then moved in with my girlfriend into her main residence. My current rental money goes into my girlfriends bank account and i have a signed contract with her stating i have no hold on her property bit like a prenuptial agreement. Can i sell my property without paying CGT, plus also the taxman doesn't know that i currently rent it. Is there anyway of getting around this problem even selling this property and purchasing another. Idea's please.
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Comments
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Please help me evade tax!!
Go on!!
It's not wrong you know, it's my money really!!0 -
The CGT allowance with the various reliefs available mean you may not end up paying much CGT.
You say you've not been paying tax on your rental income, I guess that's tax evasion. HMRC have started taking a more active interest in people like yourself. I guess they can correlate who has been paying the utilities/council tax against the owner of the property...
Maybe better put some of the money from the sale aside in case of fines."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 -
none of the replies help that if she decides to throw me out I'm left without a residence, plus I'm not allowed just to keep the property empty. In affect what you are saying is keep the house and tell the tax man i have just started renting it out. Or buy another with a remortgage on the first property and inform him that this is now my main residence then sell the rented property and only pay tax on the profit from that which would be nill due to the remortgage.0
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I thought you owned a house. No one forced you to rent it out.none of the replies help that if she decides to throw me out I'm left without a residence,
Don't see why not.plus I'm not allowed just to keep the property empty.
1. You are allowed 3 years IIRC of exemption if the house was once your PPR then you started renting it. So, depending on the actual dates you bought and sell you may not have any CGT to pay. However, as you haven't been declaring the rent income, don't expect any slack off HMRC.In affect what you are saying is keep the house and tell the tax man i have just started renting it out. Or buy another with a remortgage on the first property and inform him that this is now my main residence then sell the rented property and only pay tax on the profit from that which would be nill due to the remortgage.
2. Can we dispel this "if I remortgage there won't be any profit" myth, please. You are liable for tax on the selling price minus the buying price minus costs and indexation. A market value will be used if you try selling or buying at "faked" prices. What mortgage you have on the place makes no difference.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 -
"In affect what you are saying is"
What I am in effect saying is I don't think you should come on to a money saving website asking for advice on how to further evade tax.
How about this for a novel one, why not pay it?0 -
"In affect what you are saying is"
What I am in effect saying is I don't think you should come on to a money saving website asking for advice on how to further evade tax.
How about this for a novel one, why not pay it?
think you need the "bly" taking from you name mate. anyway the ‘Private Residence Relief’ rule will apply. Perhaps if you knew what you were talking about instead of trying to make yourself into life teacher you might do better. Best to be thought a fool than to open your gob and remove doubt mate.0 -
has your mortgage lender given you permission to let property too?0
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House Insurance, were they imformed you had tenants in?
That could considerably affect Insurance of a property!0 -
Firstly, income tax. The rent should be declared as income. The mortgage interest you pay on the mortgage (I am assuming you didn't buy it outright) is an allowable expense as are other bits and bobs like insurance, gas certificate, maintenance. It could be that there would be very little tax to pay - in which case why not be honest?
Now CGT. You get relief for the time it was your PPR and the last 3 years of ownership. You are also eligible for letting relief and taper relief as well as your CGT allowance. This should mean there is no CGT to pay, so you may as well be above board and declare it.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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