How to calculate capital gains tax?

[Andrea C]

Hi!

I have just bought a second property which i am now living in and have set up my apartment which I have had for five years to rent. I am wondering if I decide to sell my apartment in a year will capital gains tax be calculated on the increase in value from date of rent or date of sale? thanking you in advance for any words of wisdom!

 

[ClubMan]

If the apartment was always your PPR (Principal Private Residence) up to now and you sell within a year of vacating it and moving to your new PPR then, even if it was rented, no CGT applies. Otherwise (i.e. if you sell later than that) then some portion of the resale gain is assessable for CGT. For example if you owned the property for 7 years, lived in it for 5 years as your PPR, rented it out for 2 years and then sold it then ((2 -1) / 7) = 14.29% of any gain is assessable for CGT. I am calculating this in years for simplicity but the actual calculations may be done in months, weeks, days etc. for more accuracy. Note that if you rent a former PPR out within 5 years of purchase as an owner occupier then a clawback of stamp duty applies as explained on .