Capital Gains Tax on rental property, if I do not also own a home.

Flyingbanana46

woahsoah said:

Flyingbanana46 said:

Great thread people. I am downsizing from my current 4 bedroom house back into my 1 bedroom house as everyone has now left the big family home but i do have plans to move in the next 3 years. I did hear from a couple of people that said if you live back in your rental property as your only home for a period of 2 years then there will be no CGT. One persion even said as little as 9 months. Rather than listen to friends i thought i would ask the experts

Look up private residence relief. PRR is based on the proportion of the time you lived in the property. You'll get this plus 9 months. This is my understanding at least. Not an accountant. I don't think there are ways to skirt around moving out and moving back then claiming it as your primary residence and so no CGT. If you do, you'll still have not lived in it for X amount of time which ultimately causes a CGT charge.

Thanks Woahsoah that is really helpful. Thanks

MEM62

kingstreet said:

You are likely to be liable for CGT on the sale price minus the value at the point you started letting. 

Errrr.... No.  That is not how it works.