Crosswords0 min ago
Capital Gains Tax On A Property
If I was to rent the house out I now live in for over three years and then decide to sell how long would I have to move back and live in the house to avoid CGT?
Thanks for your replies in anticipation
Thanks for your replies in anticipation
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http:// www.the answerb ank.co. uk/Law/ Civil/Q uestion 1447547 .html
There is a smallish period of time you can move out, then move back in, and the period out would be ignored for any CGT liability.
However, having moved back in after being away for the period you are talking about, there will always be a potential liability at the end, even if you live in it for 50 years more.
Note what was said before, the liability only exists on any increase in value between the times you weren't living there - not over the whole capital increase (if any). Plus, you can use your annual personal CGT allowance at the end when you finally sell, to offset any potential liability to lower net figure.
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There is a smallish period of time you can move out, then move back in, and the period out would be ignored for any CGT liability.
However, having moved back in after being away for the period you are talking about, there will always be a potential liability at the end, even if you live in it for 50 years more.
Note what was said before, the liability only exists on any increase in value between the times you weren't living there - not over the whole capital increase (if any). Plus, you can use your annual personal CGT allowance at the end when you finally sell, to offset any potential liability to lower net figure.