Hi
I have not looked at CGT on rented houses for a while, so please forgive me for my asking daft questions!
We lived in a house PPR, for about 18months. Now it is rented out. Would the 36months exemption (CGT if soled within 36months) apply, even though we were only in it for 18 months prior to rental?
If we had purely a rental property (ie not our PPR) i assume the whole period is subject to CGT?
If you purchased a property purely to rent out, would moving into it at the end of the rental period help at all? For how long would you need to live there? How about moving in before the rental starts? How long do you need ot be in there to qualify for the '36months'?
Thanks guys and gals.
This is not an enquiry for a client. Just me, thinking about stuff to do, and yes i would go for professional help before doing anything. I just want an outline idea.
Paul
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Replies (3)
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If
it was your only property for the 18 mths then you should get the final 36 months
A pure rental property would be fully chargeable.
Moving in at the end would depend on the "quality" of occupation but could well fail
It is not the length of time that matters.
Moving in at the start could also fail.
If you can get a copy read the article in Taxation magazine 28/9/06 (if I remember correctly)
Lettings Relief
Also don't forget possible use of CGT Lettings Relief where property which has been a PPR is also let. Up to £40K or same as PPR exemption whichever is smaller. It is available to each owner where joint ownership arises (even husband & wife).