Private residence relief - cgt

Collapse
X
 
  • Filter
  • Time
  • Show
Clear All
new posts

  • Gordon999
    replied
    You can only claim one main residence at any time.
    If you have owned it since Oct 2017 and the old building was replaced by a new building before you moved in , you can claim the period before moving in was for improvement work on your main residence. If you have not claimed main residence at another address, then you should claim it for this current address. As owner occupier and no subletting , you should be able to sell without CGT.
    Don't risk diluting your main residence exemption by renting for 18 months ( PPR relief reduces to 9 months in April ) .

    Leave a comment:


  • jpkeates
    replied
    It's not a potential change in law, the 18 months relief will be 9 months for completions after April 5th.
    Letting relief will only apply to live in landlords from the same date.

    Leave a comment:


  • AndrewDod
    replied
    Why would you "not pay CGT" if you have been resident for 1 year of 2.5 years on a £100K profit. That's simply not the case. You had some other residence - PRR is about residence not ownership.

    Arguably since it really is a totally new house some sort of two-period calculation might apply - on the land versus the house. I would definitely discuss this one with HMRC BEFORE selling - as you may want to live there longer to dilute the gain. The issue is whether they will regard the cost of the massive building work as a relief or effectively a sale of a new item to yourself.

    But anyway this is exactly how some developers escape tax while the rest of us pay - building houses, pretending to live there (or actually living there) for some nominal time, and effectively writing all of their business profits (millions) to CG on own homes.

    Leave a comment:


  • LANDLADY43
    started a topic Private residence relief - cgt

    Private residence relief - cgt

    I purchased an old dilapidated cottage in Oct 2017 and it was then demolished in May 2018, but I never lived in the cottage. A new house was then built and completed in March 2019 when I then took occupation. I have since met a lovely guy and am going to move in with him next month. I have made about £100k profit from this project and if I sell now I would not pay CGT, as its been my main residence for about a year. However, I am considering renting it out for 18 months and take advantage of the Private Residence Relief, ie I can rent it out for 18 months before I pay any CGT, although I realise there is currently a potential change of law, which may reduce this to 9 months.

    My question is - on the CGT form, the wording is "You have one home and you've lived in it as your main home for all the time you've owned it". But in my case, I have owned the land on which stood the old cottage, but have not lived in it all the time I have owned it, ie it stood empty, then demolished. I assume HMC will not charge me CGT on this period of time, although I was not living there nor was I renting it out, it was just empty????
    Thanks


Latest Activity

Collapse

  • Advice
    by jhoggard
    Hi,

    I currently have a property rented out in my own name with a fair bit of equity around 50% LTV this is actually a repayment mortgage which i'm looking to switchover to a interest only. When i do this i'm also taking money out of the property to put towards another which i'm looking...
    20-01-2022, 14:25 PM
  • Reply to Advice
    by theartfullodger
    Depends to a great degree on tax regulations over the coming years. We only know what the rules are today, not what they'll be in future e.g. when you retire

    I expect chancellors to cut back on the advantages of people owning property through companies (well, wouldn't you if you were chancellor)...
    22-01-2022, 13:06 PM
  • Reply to Advice
    by Gordon999
    1. No. You have not sold the property yet

    2. 19% on profit by company.

    3. Seek advice from accountant.
    22-01-2022, 09:36 AM
  • haring inherited property
    by halfax
    i am inheriting a property and would like to place half in my grandsons name.
    as anyone done similar?...
    19-01-2022, 18:12 PM
  • Reply to haring inherited property
    by halfax
    thanks for help to everyone who replied, great forum
    21-01-2022, 18:55 PM
  • Reply to Looking for tax / financial advice for a BTL /holiday let long-held portfolio
    by ifallelsefails
    I watched a webinar from Landlord studio and this man Tony Gimple was featured in it. Have a look at his Linkedin profile:
    https://www.linkedin.com/in/tonygimp...alSubdomain=uk
    He has a website whereby he consults exactly to your situation:
    https://www.bel.gb.net/
    ...
    21-01-2022, 17:13 PM
  • Reply to Recovering CGT on sale of property
    by ifallelsefails
    Having read what Gordon999 posted, it sounds just like what you can get via Crowdcube. Most of the businesses seeking funding on Crowdcube are eligible on the EIS scheme and you get shares in these fledgling businesses. I was only interested in Crowdcube because a number of businesses that I know were...
    21-01-2022, 17:05 PM
  • Reply to Expense claim - Name and address in the receipt
    by geeksy
    Thank you, appreciate your reply.
    21-01-2022, 13:21 PM
  • Expense claim - Name and address in the receipt
    by geeksy
    Hi,

    I need to claim an expense (£1500) for the bathroom and attic renovation work done in the property I let. I have two receipts for the same purchase, one originally issued and the second subsequently issued with additional two items.

    One of these has my address on it, not...
    20-01-2022, 11:39 AM
  • Reply to Advice
    by jpkeates
    1 - Yes, the company will have to buy the property and you will be selling it. So there's a CGT "event" for you and the business will pay SDLT. You need to think about structure if you're going to borrow to grow, most lenders will want one company per property and director's personal guarantees....
    20-01-2022, 16:02 PM
Working...
X