Q: Hi,
I dont know what to do for the best! Im looking into buying a new home and was initially let go from my current house so I love it and hopefully get equity in the property could hold. Im wondering if I could just as well do it right to sell the property in the case takes a dive as all current speculation.
I would love someone and opinions on what they think ?. Thank you!
Sorry I have not been back to the thread but you have been in capable hands.
There are a few allowances to reduce the tax liability, so all is not lost.
Anyway of you are making megabucks on the sale, you can afford a bit of tax!
CGT exemption is for the time it was your PPR and the last three years of ownership. There are other reliefs available, including taper relief, letting relief and each individual has a CGT allowance of ￡9,200.
Of course you can sell after the 3 years is up but you may have a CGT tax bill.
So if you rent out your house for more than 3 years then move back into it you are exempt from CGT if you then decide to sell?
Nothing.
CGT exemption is for the time it was your PPR and the last three years of ownership. There are other reliefs available, including taper relief, letting relief and each individual has a CGT allowance of ￡9,200.
Of course you can sell after the 3 years is up but you may have a CGT tax bill.
What happens if you move back in after the three years then sell it?
I dont know what I should do for the best! I am looking to purchase a new home and was originally going to let my current property out so that I could keep hold of it and hopefully gain equity in the property. I am now wondering if I might do just as well to sell the property in case the property market takes a dip what with all the current speculation.
I would love anyones views as to what they think?…. Thanks!
Really depends on what time scale you are thinking about.
If property prices take a downturn this year and bottom out in 5 years time you could then see a another cycle that takes prices back up to current prices in 10 years from now. After that if they rose sensibly you would gain equity. Not sure why people love being in debt though.