To avoid CGT for another property you need to live in the property before you sell BUT for how long? and are there any other ways to reduce or not pay it. THANKS!
2007-01-05 08:06:01 · 5 answers · asked by sliik 1 in Business & Finance ➔ Taxes ➔ United Kingdom
There is no fixed minimum time before you are entitled to Principal Private Residence relief. You merely have to establish that the property is actually your main residence.
HMRC will look at all the facts but there are a number of things you can do to help establish residence.
First, tell HMRC! Many overlook this but you should always notify them of your change of address.
Make sure you are on the electoral roll at the new address.
Make sure as much post as possible is sent there, especially financial documents such as bank statements.
Let out your other house so that it is not available to live in.
You get the idea. Do as much as possible to prove that you have changed address. Then you will be entitled to PPR for the last three years of ownership.
2007-01-07 19:54:19 · answer #1 · answered by tringyokel 6 · 1⤊ 0⤋
Your calculations are defective, you have taxed the full volume of the portfolio once you're in basic terms taxed on the revenue. listed decrease than are the final figures for 30% improve consistent with 12 months and 15% tax on the earnings: 12 months 0: 100k 12 months a million: one hundred twenty five.5k 12 months 2: 157.5k 12 months 3: 197.1k 12 months 4: 247.4k 12 months 5: 310.5k That assumes which you liquidate the revenue each and every 12 months, pay the taxes, and drop it back into the account which no one ever does. in case you only go away it on my own for 5 years, and pay taxes on the full beneficial aspects on the top, you will finally end up with 330k. Your in basic terms disillusioned approximately this tax considering the fact which you have misunderstood it.
2016-11-26 22:07:56 · answer #2 · answered by Anonymous · 0⤊ 0⤋
If you can afford a second property you can afford to pay the CGT when you sell it.
2007-01-05 08:08:50 · answer #3 · answered by Anonymous · 1⤊ 0⤋
you can exempt up to $250,000 of the gain if
*properity is your Primary residence for 2 years out of last 5 years
*you have owned the residence for at least 2 years.
*if your spouses has lived there for more than 2 years you can exempt up to $500,000 of the gain
if for some special circumstances (medical reasons, moving due to a change of a job.etc) you can pro rate the exemption
2007-01-06 18:24:54 · answer #4 · answered by clu25 2 · 0⤊ 1⤋
You have to live on the property for two years-- it has to be your primary residence.
You can also offset capital gains by deducting all improvement costs, closing costs, etc.
2007-01-05 08:17:10 · answer #5 · answered by Anonymous · 0⤊ 1⤋