want to keep the money in the bank so that if property drops i can get a better deal but dont want to pay capital gains tax, is there a time limit as i have lived in this property for over 15 years
2007-01-02 11:46:33 · 5 answers · asked by K T 1 in Business & Finance ➔ Taxes ➔ United Kingdom
In the UK your private residence is not subject to Capital Gains tax unless you have used a portion of the house for business purposes and claimed "use of home" relief...............
2007-01-03 05:21:04 · answer #1 · answered by veilofmistiness 2 · 0⤊ 0⤋
If you have been living in the property for at least two years before you sell it, then you are not liable for capital gains tax. The only tax you will pay is on the interest of the money that you bank and leave in your account.
This applies in the UK
2007-01-02 19:57:22 · answer #2 · answered by sarch_uk 7 · 0⤊ 0⤋
If you lived in your house for at least 2 yrs out of the last 5 yrs you are them entitled to either $250,000/$500,000 (depending on your filing status) and it does not matter how long you stay out of the real estate market. You would not have to pay capital gains... But should you failed to meet the above requirements you will owe capital gains regardless of what you do with the money. Time to re-invest is no longer of the essence... For more details consult the IRS or your tax professional./
2007-01-02 19:57:13 · answer #3 · answered by kalamity 3 · 1⤊ 0⤋
Capital gains tax does not apply to your own residence when you sell/ but interest is taxable on your money in the bank for what its worth
2007-01-04 03:25:02 · answer #4 · answered by srracvuee 7 · 0⤊ 0⤋
I believe capitol gains tax is 18 months
2007-01-02 19:51:09 · answer #5 · answered by Larry 3 · 0⤊ 1⤋