Capital Gains

jetsetwilly_2

No idea how this works really. 2 scenarios, how much would I pay in tax?

1. Bought my flat 47000 3 years ago. Sell it tomorrow for 67000 (20k profit). Use this money plus a inc mortgage to buy a house for 100k

2. Same costs 47k 3 yrs ago, sell now for 67k (20k profit). Buy a house for 100k in Canada and move abroad.

Any help greatly appreciated

Ian_W

If it's been your principal private residence, then in both scenarios - same answer - NOTHING.

If you've never lived there it gets a wee bit more complex and you need someone else to answer. Although I've a sneaky feeling the first 3 years may lead to a similar answer.

jetsetwilly_2

Ok, so if I sold the house for the 20k profit, then rented, I would keep all the 20k?

simonfr

You would only pay CGT if you rented the property out during the term of ownership, and you had another property which was declared as your 'principle residence'. There is a three year window from the date of renting out to declare which of the two properties is your principle residence.
This is the VERY simplified view........ and other factors may come into account.

However you seem to only have the one house by reading your post. You keep all the dough regardless if you rent personally after selling, as it was your principle residence by default.

Paul_O'Kshields

I have a simiilar query -
I bought a property in London in 2000.
Lived in it for 18 months.
Met Girl from Glasgow. Moved to Glasgow to be with girl, effectively "paying rent" to her while cohabiting - I do not own any share of her property.
Meanwhile, rented out my own place in London.
Am now selling my own place, but will be living in it for a while until sale completes, because my work is taking me back down to London.
Am I liable to pay capital gains tax on the proceeds? If so, what relief if any am I eligible for on the CGT?

All advice gratefully received.

micheleen

Paul_O'Kshields wrote:

I have a simiilar query -
I bought a property in London in 2000.
Lived in it for 18 months.
Met Girl from Glasgow. Moved to Glasgow to be with girl, effectively "paying rent" to her while cohabiting - I do not own any share of her property.
Meanwhile, rented out my own place in London.
Am now selling my own place, but will be living in it for a while until sale completes, because my work is taking me back down to London.
Am I liable to pay capital gains tax on the proceeds? If so, what relief if any am I eligible for on the CGT?

All advice gratefully received.

Unless you've made your London home your PPR again (I believe that 6 months residence with it being your registered address for bills,etc) then I think you will be liable for CGT. 3 years after leaving is AIUI the cutoff before CGT liability

paulbroad3

Not 100% sure, but I don't think you pay Capital Gains Tax on your first residence - only on 2nd homes - might be wrong, but sure s.o. will advise.
So shouldn't pay tax at all.