Capital gains tax??!

[deano251]

Hi all,

i have lived in my flat for 5 years, i intend to rent it out soon as i am getting a second joint mortgage with my g/f.

I am concerned about the amount of cap. tax payable if i sold the flat in say 6 years!

If , when the time comes to sell, i moved back into the flat for six months prior to the sale, and declared my other house as my girlfriends residence only, would i get off with reduced capital gains tax on my flat?

and would it put any tax onto the joint-owned house(after the sale of the flat, it would be my only home)?


cheers :confused:

[cnrsoper]

no. no. no. no. no.

[deano251]

cheers for the very helpful comment mate, im a novice seeking advice!

[Jennifer_M]

I would guess that the taxman isn't that stupid to allow such a quick and 'easy' way of 'evading' tax.

I believe that CGT relief is calculated on how much time you have lived in the house over a certain period of time. 6 months just before selling after renting the property out for X years I'm afraid wouldn't remove all of the CGT.

If you search through the forums you might get some answers as I believe people have talked baout this subject before.

[MrWoof]

Jennifer is pretty much right on this, go to the Tax Questions area of this forum. Karongo has just answered this question for another poster.

[cnrsoper]

It gave all the information you required, moving back in 6 months prior to selling having rented it out for 6 years would not affect your CGT.

As you currently occupy the property as your main residence, the time prior to you renting it out, and the final 3 (?) years that you own it for are not counted towards your capital gains tax. there are also lots of other exceptions to CGT but it is not worth while detailing them in this response.

It would be good advice if you are unsure about your tax situation to speak to a tax advisor before you let the property out, allowing you to plan your tax bills in advance.

[deano251]

thanks i appreciate the advice!