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Wondering if I have to pay capital gains tax if I sell a property I bought 25 years ago? The gain is about 130k. I've lived there or it's been rented out the whole time. I'm going to move back there so it will it will be my main residence again. I have purchased 3 other houses since which are also rented. I heard I have to be resident there for at least a year, just wondering if this is right before I decide to move.....
Yes you will, and any of the other houses, unless one of them is you main residence at the time of sale . You need to have been living there for at least a year at time of sale. You can't avoid it as all sales are registered against your NI number these days, so declare it and bit the bullet. You have CGT allowance each year, and anything over that is based in your income in the year of sale to determine which rate of CGT you pay. PM me if you have any sleep I fix questions.Quote:
Originally Posted by goats
If you have a wife you can transfer part ownership in whatever percentage you choose so that you both can take advantage of the annual tax free allowance.
https://www.gov.uk/government/public...ree-allowances
you will have a calculation to perform - basically what percentage of years owned was it your main residence. This is to calculate the dicount for principal private residence relief. It is not as easy to simply live in it for the last year before the sale in order to avoid CGT.Quote:
Originally Posted by goats
https://www.gov.uk/government/upload...3679/hs283.pdf
Another poster makes an excellent point about conveying half of the property into your spouse's name in order to utilise their annual capital gains exemption (£11,100 each). This is not so straightforward if the property has a mortgage attached.
Another general tip for other CCMBers - capital gains die with you. So sometimes it can be better to hold until death (depending on inheritance tax position), or transfer 100% to a terminally ill spouse .