Capital gains on selling property

dribble127

Hi

A bit of back story. I am in a very fortunate position where I was given a property through a trust. The property was released from the trust in June 2024 and has been my primary residence since. Recently my partner has wanted me to move in with her and I am considering selling my property (approx 120k) My question is will I be subject to capital gains or any other tax on this sale or am I free to do what I please with the money? I was hoping to pay off the remainder of my car (approx 15k) and then put the rest in savings until we are ready to buy our joint property down the line.

Keep_pedalling

There may have been a CGT liability on the original transfer out of trust (depends on the type of trust)  but you have no CGT liability as any gain in the last year is exempt as it is your primary residence. 

Bigphil1474

You're home free. CGT is usually only payable on second homes, investment properties etc., not your main home. I've not heard of it ever being paid on your primary residence unless you've let it out in the past.

poseidon1

dribble127 said:

Hi

A bit of back story. I am in a very fortunate position where I was given a property through a trust. The property was released from the trust in June 2024 and has been my primary residence since. Recently my partner has wanted me to move in with her and I am considering selling my property (approx 120k) My question is will I be subject to capital gains or any other tax on this sale or am I free to do what I please with the money? I was hoping to pay off the remainder of my car (approx 15k) and then put the rest in savings until we are ready to buy our joint property down the line.

Best to specifically check how any CGT at trust level was handled prior to the transfer to you.

Its possible ( although unlikely) that  a CGT holdover election was executed by the trustees so the property may have come to you with an embedded deferred taxable gain ( common with asset transfers out of discretionary trusts).

So in your case what was the type of trust the property was previously held in and what was the trigger event that led to the transfer to you?

 With a bit of luck it was a life interest trust, with you as remainderman on death of life tenant.