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CGT on second home
Guy.H
Posts: 2 Newbie
Hi Everyone,
I wonder if anyone can answer my question on capital gains tax.
We currently own two houses, our primary residence we bought in 2000 for £86,000 and are currently trying to sell it for £180,000. Due to the falling house market we have not managed to sell and it has been on the market for over a year now. We have also bought another house (bought in Feb. 2007) that we intend to move into once we have renovated it.
Because it is taking so long to sell our first house, I think we may be liable for CGT on our second house, is this the case? What we are going to do is sell our primary house, which will be exempt but when it comes time to sell our new house will I get hit for CGT for the period of time when we owned both and it was not my primary residence?
Also I have read that the CGT on second house law has just changed on April 6th and that the taper relief and some other relief (can't remember the name offhand) has been abolished. Will this lack of relief apply just from now onwards or will it be taken off retro-actively so it will be as if it never occurred.
Sorry if I have not described myself properly, but any questions just let me know and I'll try and clear things up.
thanks a lot for any advice with this matter
Cheers
Guy
I wonder if anyone can answer my question on capital gains tax.
We currently own two houses, our primary residence we bought in 2000 for £86,000 and are currently trying to sell it for £180,000. Due to the falling house market we have not managed to sell and it has been on the market for over a year now. We have also bought another house (bought in Feb. 2007) that we intend to move into once we have renovated it.
Because it is taking so long to sell our first house, I think we may be liable for CGT on our second house, is this the case? What we are going to do is sell our primary house, which will be exempt but when it comes time to sell our new house will I get hit for CGT for the period of time when we owned both and it was not my primary residence?
Also I have read that the CGT on second house law has just changed on April 6th and that the taper relief and some other relief (can't remember the name offhand) has been abolished. Will this lack of relief apply just from now onwards or will it be taken off retro-actively so it will be as if it never occurred.
Sorry if I have not described myself properly, but any questions just let me know and I'll try and clear things up.
thanks a lot for any advice with this matter
Cheers
Guy
0
Comments
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I'd have shifted everything over to the house you are renovating to move into. Makes it your PPR and you are exempt from CGT on your old main residence for three years after moving out.
You have to consider whether the property has increased in value over the last year anyway - more than £9000 for each person that owns it. If it hasn't risen by that much there'd be nothing due anyway.Everything that is supposed to be in heaven is already here on earth.
0 -
Doozergirl wrote: »I'd have shifted everything over to the house you are renovating to move into. Makes it your PPR and you are exempt from CGT on your old main residence for three years after moving out.
You have to consider whether the property has increased in value over the last year anyway - more than £9000 for each person that owns it. If it hasn't risen by that much there'd be nothing due anyway.
That is encouraging news, is it true that I have up to 2 years to nominate my PPR? If so I could still do that. Fantastic news about the 3 year thing, that could really help me out.
thanks for your help
Guy0 -
you have 2 years to nominate your PPR, so nominate the new one ASAP.I'm a Forum Ambassador on the housing, mortgages & student money saving boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Forum Ambassadors are not moderators and don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com (it's not part of my role to deal with this). Any views are mine and not the official line of MoneySavingExpert.com.0
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