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Strange Tax Question
Interested!
Posts: 12 Forumite
If someone cannot live alone for a period due to poor mental health ( for example a severe eating disorder) so rents their home out and moves in with friend/family would they still be liable for capital gains tax on any increase in value of their house if they eventually sold or would they be exempted in some way? Thanks
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Comments
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Yes, they would.
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Yes, and liable for income tax on ALL the rent paid.
There are by the way over 10 taxes a landlord may have to pay.0 -
There are some exemptions (I think one is military personnel away on service) but I've never heard of this one.0
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They also need to look into the requirements of being a landlord.0
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Better to turn off the boiler and leave their house empty.0
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The friend would also need to convert to a buy-to-let mortgage too. The general CGT exemption referred to is Private Residence Relief and applies to those selling their own homes. Full relief is given to those who have occupied for the full period of ownership. Those who have lived in the house for a portion of the ownership period get some relief, I believe. It tapers according to how long the seller actually resided in the property.0
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Interested! said:If someone cannot live alone for a period due to poor mental health ( for example a severe eating disorder) so rents their home out and moves in with friend/family would they still be liable for capital gains tax on any increase in value of their house if they eventually sold or would they be exempted in some way? ThanksThey would be exempted for the period they lived there. Basically (lots of details I'm skipping) if they lived there for 5 years, let it for 5 years, sold it, theyd be liable for half the gain.But, is it a good idea for soemone who has poor mental health to have the added stress of being a landlord?0
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