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Capital Gains Tax
Debwilsh
Posts: 4 Newbie
Hi all
I bought a house some 5 years ago. This is my only property (I live with son) and I rent the house out. Now the house is too big for me and I am thinking of selling it. I know that if I sell I have CGT to pay, at what level I am not sure. But my question is, if I live in my house for a certain number of months/years, will I then become exempt from this tax or do I have to pay it regardless if I live in it or not. Or would I get some relief on the tax for the amount of months/years I live in it. Hope that makes sense.
Thank you in advance.
I bought a house some 5 years ago. This is my only property (I live with son) and I rent the house out. Now the house is too big for me and I am thinking of selling it. I know that if I sell I have CGT to pay, at what level I am not sure. But my question is, if I live in my house for a certain number of months/years, will I then become exempt from this tax or do I have to pay it regardless if I live in it or not. Or would I get some relief on the tax for the amount of months/years I live in it. Hope that makes sense.
Thank you in advance.
0
Comments
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You get relief on the time you lived there plus 9 months.Debwilsh said:Hi all
I bought a house some 5 years ago. This is my only property (I live with son) and I rent the house out. Now the house is too big for me and I am thinking of selling it. I know that if I sell I have CGT to pay, at what level I am not sure. But my question is, if I live in my house for a certain number of months/years, will I then become exempt from this tax or do I have to pay it regardless if I live in it or not. Or would I get some relief on the tax for the amount of months/years I live in it. Hope that makes sense.
Thank you in advance.0 -
Might have been a big saving to do this before the 50% reduction in the CGT allowance coming on 6/4/23, but that ship has now sailed unfortunately (or just about to).No free lunch, and no free laptop
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The answer will depend on what CGT rules when you sell. Given the terrible state of UK economy don't think CGT will get easier .
Currently you declare and pay within 60 days of sale.
Knowing current rules won't answer your question.1 -
Moving in is never going to wipe out the fact that it hasn't been your main residence for 5 years, but the CGT calculation will take into account any time it has been (plus 9 months) as a proportion of the total time owned and so would reduce any CGT owed.Debwilsh said:Hi all
I bought a house some 5 years ago. This is my only property (I live with son) and I rent the house out. Now the house is too big for me and I am thinking of selling it. I know that if I sell I have CGT to pay, at what level I am not sure. But my question is, if I live in my house for a certain number of months/years, will I then become exempt from this tax or do I have to pay it regardless if I live in it or not. Or would I get some relief on the tax for the amount of months/years I live in it. Hope that makes sense.
Thank you in advance.2
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