NO CGT when selling first house, what about the second ?

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

    NO CGT when selling first house, what about the second ?

    Do i really Need an Accountant ?

    I am now selling after 3 years my first residential house. I Am of course registered at this address on the electorall roll, bank , driv licence etc... After the sale happens in one month time (no CGT to pay), i will be moving in my other house, currently with a BTL Mortgage and with my ex girl + tenant living in.
    The First Question is : Meanwhile the first house sells, could i move all my details (Elec Roll, Bank Statements etc..) on my next house, where i am going to live ? Any complication later on with the Inland Revenue, for moving the details before completion ?
    The Second Question: After the sale happens and i move into my second house, how long do i have to live there (min period) in order to be able to sell again, and avoid CGT ? 3-6 months ?
    Third Questions : If I sell a house while am back in my country, i should be able to avoid CGTax in Uk, but will i face CGT in my country ?

    Thank you for your Help

    #2
    Assuming your first property is really your home then as you say there will be no CGT implications.
    Your second property is a B2L and registered as a rental property if you really are going to live there then you will need permission form the mortgage provider and you may have to shed your tenant. If they did not live there you would have a choice of two property that could be your home, this opens a window for 2 years for you to nominate which property is your PPR but with a tenant this will be refused by HMRC.
    You may have to move into the property for 9 to 12 months to qualify this property and the HMRC avoidance tems will no doubt pick this up if the tenat is still there and again refuse PPR status.

    If you left the country and stayed out for 5 whole FY's and you sold the property then CGT may not apply in this country but may well apply in your country of residence. Regards Peter
    Last edited by TaxationPete; 12-07-2007, 05:51 AM.

    Comment


      #3
      Thank you Mr Peter

      Please could you tell me, how does the Inland revenue know that the house was let to tenants if an agent was not involved ?
      Do they check with Royal mail, council etc... ?
      I have had only my family living there for 1 year, coming up and down from abroad, and a couple of tenants, who whould really be defined lodgers, considering that i was living there at the same time with part of my belonging ?
      That is really what i did ?
      Regards
      jhanny

      Comment


        #4
        Sorry forgot !
        How it is determined if a property is really my home ? I guess when you have your the details registered there, indluding the electoral roll and the bank statement, even the Gp , and it was the first house i bought in my life, that must be considered the main residential house.

        I guess if someone sells the first house, he/she must live somewhere, therefore the following house becomes the main residential after the first is sold.
        And if I decide to put the second house for sale why shall i pay CGT on my second main home (first in this case)

        Sorry to if i appear to insist, it's just to understand the all process.

        Regards
        Jhanny

        Comment


          #5
          So you did not report the rental income to HMRC and you did not offset the mortgage interest against the gross rental income although it is on a B2L mortgage. Regards Peter

          Comment


            #6

            Comment


              #7
              NO CGT when selling first house, what about the second ?

              have a house that I bought new in 1988 costing £70,000, only lived there for a month.Unfortunately my circumstance changed and things did not go according to plan.So moved in with family and rented the house out.The house is now empty and not let out after years of letting out , I have no plans to rent out due to all the hassles. This is my only house and I want to sell and buy a bigger house to live in.

              Comment


                #8
                Did you actually live in the property lock, stock and barrel, DVLA, passport, Electoral register HMRC and all utility bills to that address. Was your reason for leaving directly work related and you had to move away ? Regards Peter

                Comment

                Latest Activity

                Collapse

                • CGT and income
                  by slopemaster
                  Considering selling our rental property and trying to estimate how much CGT is due. We are both basic rate tax payers and the gain from the property will take us into higher rate, so the amount of tax we pay will depend on income for that year – it does vary year to year. I presume the relevant income...
                  06-07-2022, 05:47 AM
                • Reply to CGT and income
                  by slopemaster
                  Thank you all
                  06-07-2022, 14:47 PM
                • Reply to CGT and income
                  by Lesney Park
                  Yes

                  You do, or better an accountant but essentially you report and pay the gain at HMRC https://www.gov.uk/report-and-pay-yo...r-6-april-2020 estimating what you need to, and then report it again essentially in your tax return...
                  06-07-2022, 08:34 AM
                • Reply to CGT and income
                  by jpkeates
                  You estimate your income for this year and declare and pay the tax accordingly.
                  When you complete your tax return for the tax year, the figures are adjusted then....
                  06-07-2022, 08:27 AM
                • Reply to CGT and income
                  by theartfullodger
                  60 days not 2 months.
                  06-07-2022, 07:50 AM
                • Reply to SDLT and first time buyers
                  by DoricPixie
                  How old are these children if they have yet to go to university?...
                  04-07-2022, 22:50 PM
                • SDLT and first time buyers
                  by mpppen
                  Hello again.

                  Just wondering if someone can advise.

                  If I sell a BTL to my children who do not own their own property, I understand that they'll get the stamp duty relief.... two questions then.

                  If they're buying the £350,000 jointly, does the relief count for...
                  03-07-2022, 21:52 PM
                • Reply to SDLT and first time buyers
                  by jpkeates
                  If the buyers are going to rent the property while they go to university, it may meet the criteria for Stamp Duty Relief but it may not.
                  It would be unusual for siblings leaving university to be able to commit to cohabit in a particular place when they graduate.

                  There's obviously...
                  04-07-2022, 15:14 PM
                • Reply to SDLT and first time buyers
                  by AndrewDod
                  Apart from anything else, if you are selling the property to the kids, you are getting cash and they have a 100% mortgage - and then they are not actually paying a mortgage on 100% of 350K you will be paying it -- it is not a classic GROB, but risks falling foul of GROB rules - so when you die, even...
                  04-07-2022, 14:45 PM
                • Reply to SDLT and first time buyers
                  by mpppen
                  Thanks.

                  Yes, the lender is happy to lend them 100% the purchase price so not gifting on our side. In essence, it's just removing it from our name into theirs as he is also our lender.

                  It's unusual I appreciate but it's a private commercial lender - if that makes sense. His...
                  04-07-2022, 13:55 PM
                Working...
                X