CGT PPR when you have bought another property.

[BK2]

Hi,

I know this may have been discussed before but am i correct in saying that If i own a property which is my PPR and buy another property with my partner which then becomes my PPR do I have twelve months to sell my first property with no cgt payable as long as it is not rented?

Thanks

 

[ClubMan]

Yes. As far as I know whether or not the property is rented in that 12 months has no bearing on the CGT exemption but I am not 100% sure on this so get advice if necessary. If you do rent it out within 5 years of purchase as your PPR then a clawback of SD will apply.

 

[Nige]

Clubman is right, renting it out during that 12 month period doesn't impact on it being deemed to be your PPR.

 

[ClubMan]

I seem to recall ubiquitous disagreeing with me on that one in the past hence my circumspection. The specific circumstances of the query in question may have been different though.

 

[z108]

But if you dont time the sale perfectly then you're in the height of it ? Is it possible just to travel for 12 monthss and rent it out without being hit for CGT ? probably not but maybe someone disagrees ?

 

[Nige]

Is it possible just to travel for 12 monthss and rent it out without being hit for CGT ? probably not but maybe someone disagrees ?

the 12 months thing is because the legislation deems the last 12 months of ownership to be part of you PPR time (provided it was your PPR at some time). So, if the last 12 months of ownership, you travel and let it out, then there's no CGT on the sale.

However, if you go travelling and let the house and return to live in the house for another year, then there will be CGT.

If you go abroad to work, you can let the property and still avail of the exemption in full, provided you live in the house before and after your time abroad.

 

[ubiquitous]

I seem to recall ubiquitous disagreeing with me on that one in the past hence my circumspection. The specific circumstances of the query in question may have been different though.

Hi Clubman,

I think our disagreement in relation to a previous scenario, discussed on AAM did indeed stem from the specific circumstances of that scenario. Your advice above seems to be spot on.

 

[ClubMan]

OK - thanks. Not having a go at you by the way. Just wanted to be careful. And, as you know, I am not a tax advisor and would always urge people to get independent advice if they are confused or even if they think that they are not!