I have a rented house, to avoid paying capital gains on it ,if I went to live in it how long would I have to ?

Answer 1

Unless it was previously your sole main residence, you will not get any exemption from CGT. The gain will be time apportioned so only the let period is chargeable.

Answer 2

As suerye says each case is looked at on its own merits. Six months is often bandied around but there is no basis for this. The first link below gives the actual paragraph from the Inspectors manual confirming this.

The words used are that it is quality and not quantity of residence that is important. You must amass evidence to show that for the relevant period the property was indeed your "home". I put "home" in quotes as it has a deeper meaning than just somewhere you slept and ate meals.

You must ensure that you are on the electoral register for that address and that all official departments are notified of your address. These will include where applicable (and I've probably missed out many) -

Inland Revenue (or HMRC as they are properly called)
National Insurance office
Passport office
DVLC (driving licence and also change the address for any cars you own)
Banks and other investments
Life insurance companies
Memberships of societies, etc.

You get the idea?

If you change none of these and rely on a postal redirection then it could be argued that it was never intended to be a residence.

The second link below is to the contents page of the manual dealing with private residence relief should you wish to read further.

Answer 3

Assuming you are in the UK, any period during which the house has not been your only or main residence is chargeble to CGT, there is no way out of this.
However, if you live in the property, ie you make it your home, and then rent it out, there is a special exemption of up to £40k on the gain relating to the let period. The key thing here is that the property must be your home, there is no time period laid down and the Inspector will look on each case on its facts.

Answer 4

Sorry do you rent out your house and own another one that you live in? The question isnt clear.

In order to avoid capital gains, you would have to live in a house and sell it after 3 years. You will be charged capital gains if you keep it for longer than this. You have to be living in the property you are going to sell.

Answer 5

To the proper of my know-how there is not any minimum qualifying era for a components to grow to be a significant inner maximum place of abode (PPR). And this is genuine that as a PPR there'll be no Capital effective aspects Tax. Please verify this which contain your community tax workplace yet i think of that once you start to hire the region out the region transformations as, probably, you would be residing someplace else and which will grow to be your PPR. whilst the valuables is finally offered the CGT would be calculated on a professional-rata foundation with a benefit bobbing up for the era whilst the valuables grow to be no longer your PPR i.e. whilst it grow to be rented out. wish this is clever.

Answer 6

Well, we have a flat that we rent out too and our advisor told us 6 months. Make sure you transfer your bank account and council tax to it etc to make it legit.

Answer 7

Hi,go to citizens advice.They will know what you need to do.Good Luck

Answer 8

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