Capital Gains Tax - a few queries?

Question

If I lived in a house for 3 years, then I rented it out for 2 and a half years, will I have to pay CGT if I were to sell the house now?

Is there any simple website that lets you calculate CGT (like you type in rough costs and it tells you what you would owe in CGT)?

Answer 1

In the UK: If you have ever lived in a house which you subsequently rent out, only the period of the rental is chargeable, but the final 2 years of ownership are not counted. In addition, there is a general exemption of £45,000 on the gain relating to the period of the letting. Then you also have your annual exemption and taper relief.
The short answer is that you are highly unlikely to be liable to CGT in the case you cite. I have never come across a case of CGT being payable on a property which has been lived in as a main residence and then let for part of the time.
CGT info on www.hmrc.gov.uk

Answer 2

In the US, if you live in the house as your principal residence for 2 of the 5 years immediately prior to the sale you're eligible for the CG exclusion. However, if you rent it out at any time while you owned it, you must pay CG tax on the depreciation allowed or allowable while it was a rental. The long-term CGT rate is normally 15%.

Answer 3

By selling the present property if you gain any amount which will attract Capital Gains Tax. Pl. keep the money in special a/c opened for the purpose Capital Gains tax deposit in any nationalised Bank. If you buy any property with in 3 years out of these funds you need not pay any capital gains tax.But the cap is up to Rs.50 lacs only.

Answer 4

Go to MortgageInvestments.com for a simple Capital Gains calculator that includes depreciation for your rental period.

Click on "Free Stuff" for all kinds of useful calculators, including the one you need today.

Good luck and best wishes!