Affordable Housing and Capital Gains Tax

[intermissionian]

Hi,

I'm approaching the 20year mark for owning an affordable home after which the council clawback will be nil. If the property has been rented out for a portion of the time (and thereby an "investment property" for that portion of the time), is the discount received on purchase of the AH considered liable for CGT on the sale of the property? For example:

Market value at purchase: 200K
Discounted price: 170K

Selling price 210K

Is the capital gain 10K or 40K for the purposes of the CGT calculation?

 

[Bobbyg]

CGT will be based on the price you paid vs the price you sell for and the gain on that, so if you paid 170k and are selling for 210k the gain is 40k

 

[Bobbyg]

The period of time you lived there as your PPR would reduce the gain

 

[intermissionian]

Thanks Bobbyg.