capital gain tax on our 2nd home?

Question

mygirlfriend and i ,brought a house for 45k 9 years ago, last year we brought another house and rented out our old one,our first house is now worth 130k, how much if any tax would we have to pay on this if we sold it this year?

Answer 1

I assume you both lived in the house up to last year.

While you are resident you are entitled to private residence relief so that part of the gain is exempt from tax. The last three years are also counted as though you were living there.

This means that in your case the whole gain will be exempt providing you sell it within three years of moving out.

Answer 2

a million. That develop right into a apartment and is problem to capital useful residences. in case you took depreciation of the sources on your taxes then your tax bill will be more desirable. 2. No capital useful residences as long as you purchase yet another homestead extra expensive then you actually bought the present. one. no man or woman cares why you're promoting or transferring distinctly the IRS

Answer 3

Tringy is correct, but on top of that, there is a general exemption of (I think) £45k (or it could be £60k - check on HMRC website) on properties which have been let - the idea is that the government does not mean to make money out of people who have given up their homes to provide homes for other people.

Answer 4

I heard recently that you can avoid pating capital gains tax on a house if it is your principal residence. Perhaps you or your girlfriend could get post etc re-directed there and claim it to be your main home to avoid paying this tax.

Answer 5

best thing you can do is to see a accountant.you may be able to transfer to one house each,and avoid tax.