What should I do, House 1,
Discussion
Jon39 said:
Incorrect presumption.
Debt free.
The problem arises when a second property has been owned for a very long time.
A large proportion of the apparent 'value' increase, is simply due to the devaluation of money as the result of inflation.
The annual CGT allowance makes hardly any difference under these circumstances.
I only mentioned this aspect, because many BTL investors seem completely unaware, that they will encounter this problem many years ahead.
To save £100,000 tax I would be tempted to live in for 6 months then sell it
Debt free.
The problem arises when a second property has been owned for a very long time.
A large proportion of the apparent 'value' increase, is simply due to the devaluation of money as the result of inflation.
The annual CGT allowance makes hardly any difference under these circumstances.
I only mentioned this aspect, because many BTL investors seem completely unaware, that they will encounter this problem many years ahead.
To save £100,000 tax I would be tempted to live in for 6 months then sell it
Rangeroverover said:
To save £100,000 tax I would be tempted to live in for 6 months then sell it
Please provide more information.
Using as the main residence for just the last 6 months, surely would not satisfy HMRC, and wipe out the entire 20 year period of it being a second property.
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