CGT on Sole proerty.

[Gazeem]

Hi,

I would like to sell a house that I have owned since the year 2000.

The house has gone up in value roughly 100k in that time.

Until Jan this year (2006) it was the only property I owned (this year I bought a home with my wife).

It has always been rented out over this period.

Would I have to pay CGT? Until the end of 2003 I was in the Army and as such could not have lived in the property itself due to my work. Since leaving I have found a job in a different part of the country so again could not practically have lived in this property.

If I state that this property was my always my intended residence but my job would allow this, will this count as my main residence and then avoid CGT?

If not are there anyother strategies?

Many thanks

Gaz.

[Tax Accountant]

Hi,

I would like to sell a house that I have owned since the year 2000.

The house has gone up in value roughly 100k in that time.

Until Jan this year (2006) it was the only property I owned (this year I bought a home with my wife).

It has always been rented out over this period.

Would I have to pay CGT? Until the end of 2003 I was in the Army and as such could not have lived in the property itself due to my work. Since leaving I have found a job in a different part of the country so again could not practically have lived in this property.

If I state that this property was my always my intended residence but my job would allow this, will this count as my main residence and then avoid CGT?

If not are there anyother strategies?

Many thanks

Gaz.

If it was your intention to occupy the property as your home upon leaving the army, you will be entitled to PPR relief on the house at least until you left the army at the end of 2003. The final 3 years of ownership will take this exemption upto the end of 2006. There is also the substantial lettings relief, taper relief and annual exemption.

You may also qualify for further periods since end of 2003 when you left the army and needed to live elsewhere due to your new job.

All in all, it appears that you will not have any CGT liability upon sale in the near future.

Ramnik
tallinnproperty.com