Capital Gains Tax Query


J

James

Hi

I brought a house in 1999. I then met my now wife and rented out the
house from June 03 to July 06. I then moved back for a couple of weeks
and sold it in Sept 06.

It is our only property as I was living in her parents house (no
parents around thankfully!) As a result it is our only property and
therefore my PPR.

Would I have to pay CGT on any of the profit I made on this? What do I
need to do next? I don't want a massive bill from Inland Revenue.

thanks for any help/advice
 
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P

Peter Saxton

Hi

I brought a house in 1999. I then met my now wife and rented out the
house from June 03 to July 06. I then moved back for a couple of weeks
and sold it in Sept 06.

It is our only property as I was living in her parents house (no
parents around thankfully!) As a result it is our only property and
therefore my PPR.

Would I have to pay CGT on any of the profit I made on this?
No

What do I
need to do next?
Complete the capital gains section
I don't want a massive bill from Inland Revenue.

thanks for any help/advice
You may want to get an accountant to complete the return and
calculations.
 
T

Troy Steadman

Peter said:
Complete the capital gains section


You may want to get an accountant to complete the return and
calculations.
And fiddle the dates presumably. The PPR Exemption falls out in May 05
doesn't it? How can the OP possibly restore it by moving back in "for a
couple of weeks" 14 months later?
 
P

Peter Saxton

And fiddle the dates presumably. The PPR Exemption falls out in May 05
doesn't it? How can the OP possibly restore it by moving back in "for a
couple of weeks" 14 months later?
There's the last three years exemption and the three years between
occupation exemption. How is May 2005 relevant?
 
T

Troy Steadman

Peter said:
There's the last three years exemption and the three years between
occupation exemption. How is May 2005 relevant?
True. How about:

The PPR Exemption falls out in May or June 06 doesn't it? How can the
OP restore it by moving back in "for a couple of weeks" in Aug 06?
 
T

Troy Steadman

Troy said:
True. How about:

The PPR Exemption falls out in May or June 06 doesn't it? How can the
OP restore it by moving back in "for a couple of weeks" in Aug 06?
Don't worry, I've seen the replies in ukf.
 
A

Alan Ferris

True. How about:

The PPR Exemption falls out in May or June 06 doesn't it? How can the
OP restore it by moving back in "for a couple of weeks" in Aug 06?
No, as was stated, he gets the occupation exemption AND the June 06 to
July 05 is covered by the final 3 years.

--
Alan "Ferrit" Ferris

()'.'.'()
( (T) )
( ) . ( )
(")_(")
 
R

Ronald Raygun

Alan said:
No, as was stated, he gets the occupation exemption AND the June 06 to
July 05 is covered by the final 3 years.
Is the occupation exemption a recent development? I don't recall
it being mentioned before in these parts. Even without it, I fully
expect no tax to be due, since there is also lettings relief available.

Are there not strings attached to occupation exemption (such as it having
to be necessitated by reason of a temporary change of workplace)?

Otherwise it would be easy-ish-ly possible to avoid CGT on a goodly number
of BTL properties by simply rotating one's sole residence between them, and
making sure none of them are left unoccupied by self for more than 3 years
at a stretch. You can keep 4 properties going if you occupy each of them
in turn for 1 year. Or (I think) eight if you occupied each for 6 months.
 
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P

Peter Saxton

Is the occupation exemption a recent development? I don't recall
it being mentioned before in these parts. Even without it, I fully
expect no tax to be due, since there is also lettings relief available.
1992

Are there not strings attached to occupation exemption (such as it having
to be necessitated by reason of a temporary change of workplace)?
There are some strings but there are no strings regarding the last
three years of ownership and there's only the requirement to have
occupied the property before and after the periods which total three
years at any time (but the occupations doesn't have to be immediately
before and after).
Otherwise it would be easy-ish-ly possible to avoid CGT on a goodly number
of BTL properties by simply rotating one's sole residence between them, and
making sure none of them are left unoccupied by self for more than 3 years
at a stretch. You can keep 4 properties going if you occupy each of them
in turn for 1 year. Or (I think) eight if you occupied each for 6 months.
The vast majority of people would prefer to live in their favourite
home and stay there not moving around all the time.
 

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