UK capital gain tax

[kssoni]

Hi

I am planning to sale my house where i am staying for last 6 years. I have registered couple of company at my home address. Both business are online business without any stock. Full house used as home, none of the part of house solely used for business. No suppliers or customers visited house.

I am worried on capital gain tax if i sale my house. Please advise, do i still have to pay CGT.

kssoni

 

[ColinCPA]

Since no part was used for business, no Section 1231 gain will result.

What is your filing status? What are you selling for? If you are single, and selling for less than $250,000 of gain, no worries. If selling for a taxable gain of more, or more than $500,000 if married filing joint, you need to calculate the basis of your home.

 

[kssoni]

Thank Colin.. Just so you know i am in UK and house is in UK. I am planning to relocate to another country. House is in joint name and Gain will be less than £60K.

 

[Fidget]

It's your main residence (and presumably the main residence of the joint owner), no part of it is used solely for business purposes, and you're not selling it to make a quick profit, so I doubt you'd be liable for any CGT.

Are you or the joint owner a national of the other country you're going to live in? If so, you might want to check out what the tax position is in that country, as you could be liable for tax on the gain on sale of the UK property under that country's tax rules if either of you have a property there.