CGT on Selling a House

Neel_2

hi all

I bought a house in july 04 (as my own personal home) for 120k which i then sold in Nov 04 for 185k

Then i about another "home" for 150k (all done under a residential mortgage) in Jan05 which i then told in July05 for 186Know i am living with my mother again

would i have to Pay CGT??

and is there a time period you have to own a residential primary home before you can sell it and not pay CGT??

And can i Keep of doing this if i want to without paying CGT??

Cheers

Neel

Ian_W

Very complex tax CGT and I'm no expert but basically your principal private residence is exempt from CGT. There's an explanation at http://www.hmrc.gov.uk/leaflets/cgtfs1.htm#b9

However, if the Revenue cotton on to the fact that you're using this relief to trade in property for gain, they will no doubt come after you for both income tax and CGT. Difficult to prove with the occasional purchase/sale but if you're turning over 2 or 3 houses a year it might well be a problem.