i got one givin when my perants passed away i am now buying another one,any help would be brill,thanks
2007-03-05 08:44:28 · 6 answers · asked by paul s 1 in Business & Finance ➔ Renting & Real Estate
It's complicated, and I have to warn you that some of the other answers are just plain wrong.
Your Capital Gains Tax liability is whatever your prevailing tax rate is, so you might only pay 22%. Plus, there is a CGT annual allowance of £8800 and various other benefits that can reduce your tax bill so you may not pay anything. Also, if you nominate the second house as your Principal Private Residence and live there 3 years you will PROBABLY find there is a way that you can be cleared of tax on both houses, but as tax is very much a personal thing, you will need to get expert help from an accountant who can better understand all of your personal circumstances.
(Also, could you rent one out until you know what you want to do with it?). Good luck.
2007-03-05 23:16:21 · answer #1 · answered by Anonymous · 1⤊ 0⤋
As long as you don't make any money at it. Once you make capital gains on the home you are taxed. The smartest thing would be to keep your parents house and sell off the other. Even thought it may be an heritance it may be subject to Capital Gains once you do sell, and it seems to me that is exactly what you're talking about. You could check with the Taxation Office to enquire about this further just to make sure. Thats my recommendation.
2007-03-05 16:53:58 · answer #2 · answered by idak13 4 · 0⤊ 0⤋
If you have owned the 2nd house for 2 or more years you should not have to pay the tax. Another option is to do a 1031 exchange for the house you sold and buy another property as an investment. I would call your accountant and talk to him/her they should know the best way for you to sell with out having to pay tax.
2007-03-05 16:48:39 · answer #3 · answered by 2littleiggies 4 · 0⤊ 0⤋
Other than your tax free allowance, in any one year of around 8K, no, you will have to pay 40% capital gains tax (CGT) on the profit since buying the property and selling the property. (Unless you leave the country and don't come back for 5 years)
Lyndon Boyle
www.lynia.co.uk
2007-03-05 17:12:24 · answer #4 · answered by Lyndon B 1 · 0⤊ 0⤋
i believe if you live in one for a certain amount of time, then you can sell it without paying the tax. If you have two houses, though, surely you can afford to give a little back...
2007-03-05 16:49:26 · answer #5 · answered by DizzyDream 3 · 0⤊ 0⤋
If you're buying one and looking at selling your inherited one then sell it before buying. otherwise rent it.
2007-03-05 16:49:21 · answer #6 · answered by bassmonkey1969 4 · 0⤊ 0⤋