Capital gains tax for current home?
I plan to buy a new home and thinking about what I should do about the current home (acquired in 2010). There are two alternatives that are relevant to me:
1) Sell the current property now. In this case, I am not liable for any capital gains tax because the property has been my main home.
2) Let the property out for 10 years, and then sell it. But in this case, the property became an investment and I'll be liable for heavy capital gains tax.
For the option 2), I'm confused about the time period to pay the capital gains tax. Does the capital gains start from the year I bought the property (ie. 2010), or the year the property became an investment?
Can anyone with good tax knowledge help?
- ?Lv 77 years agoFavourite answer
If you opt to rent it out you MUST register for Self Assessment (see gov.uk). When you start get a valuation of the property. This value is the marker for future CGT calculations.
There is no liablity for CGT on your primary home while you live in it - so the gain in value 2010 to 2014 is not taxable.
Do get a professional valuation by an accredited surveyor and make sure you keep the document.
- 7 years ago
There is no CGT to pay on the period when this was your main residence. Additionally, there is no CGT to pay on the final 18 months before you sell the property.
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