CGT and property...different question

theGrinch

If I purchase a property with the intention to make it my PPR and then
circumstances change and I sell it within 6-months without letting it,
is CGT due on any profit over the GCT allowance?

Cook_County

Absolutely! But tell me how to make a gain larger than the CGT exemption in today's property market in 6 months after stamp duty, lawyers and estate agent fees??

telly-addict

Is this your only property? I assume so if you intended to make it your PPR. Wouldn't this be covered by the last three years of ownership rule and so there would be no capital gains tax implications? Or am I missing something? It sounds as though you never lived in it, but again that shouldn't matter if it was only 6 months (< 3 years?)

theGrinch

thank you

its a property being sold by someone who is emigrating very soon so they need to sell quick. Its about 15% discount according to the valuations I have had done. its in very good condition and could be placed straight back on the market.

I had intended to purchase it and then move into it as my current property is under offer, but should my sale fall through I will just put both on the market and wait to see which sells first. This is the reason for my question.

hope this helps

deepee_2

How does exemption work if you have lived in second property in last three years. Is it full or some exemption, based on percentage stayed of ownership or of appreciation on stay period.

cash99

It is possible to gain ppr exemption on two properties at the same time, under the exemption applying to the last 36 months of ownership. So you cna move out of your existing property, and into the other, and still be fully covered.

However you would need to be careful, as the ppr exemption is not available if the property is purchased with a view to making a gain. If the IR investigate you would need to be able to justify the quick turnover of the property.