Capital gains

[5LitreV8]

Hi all. Quick question.

I bought a house (call it house 'A') a couple of years ago, lived in it for a year and a bit, then bought house 'B', moved into house 'B' and rented out house 'A'.

I am now thinking of selling house 'A', what's the score with capital gains?

Thanks in advance.

[Vesuvius 996]

5LitreV8 said:

Hi all. Quick question.

I bought a house (call it house 'A') a couple of years ago, lived in it for a year and a bit, then bought house 'B', moved into house 'B' and rented out house 'A'.

I am now thinking of selling house 'A', what's the score with capital gains?

Thanks in advance.

You'll be paying it!!

[johnfm]

Not necessarily. You need to nominate a principal residence and you have a number of months after moving ouot to do this. Do a web search - there is plenty on property tax advice out there.

[Eric Mc]

House A was your main residence at one point, therefore that part of the gain attributable to the time period you were living there will be excluded from taxable portion. That could signicantly reduce the taxable element remaining - and you might find that the taxable bit is mostly eliminated by your Annual Allowance (currently £9,200).

[srebbe64]

Bear in mind that CGT will be reduced from next April from 40% to 18%, so there maybe some merit in waiting. Best to talk to an accountant about your particular situation I reckon.

[johnfm]

try looking here:


http://www.propertytaxclub.co.uk