CGT is not payable on gains made on your PPR while it is used as your principle residence. Should you decide to move to the new property, rent out your original PPR and decide to sell it at some stage in the future, the profit from the original PPR would be exempt from CGT up until the time it became a rental/investment property.giolla said:I think it would be wise for us to sell our current principle residence when our new house is ready to move into. This way we will avoid paying CGT on a large amount of profit (320-190 = 130k).
Why would the E750 per month rent not be taxable?If we had an interest only mortgage we could earn ~750 per month on rent which would not be taxed
This isn't strictly accurate. If you come to sell a property which was PPR for some time and then rented, CGT will apply in proportion to the period of time for which it was rented. So for example, if the property was PPR for 4 years and rented for 6 years, then CGT would apply to 6/10ths of the gain in the value of the property (as 10 years was the total period of ownership).delgirl said:the profit from the original PPR would be exempt from CGT up until the time it became a rental/investment property.
We use cookies and similar technologies for the following purposes:
Do you accept cookies and these technologies?
We use cookies and similar technologies for the following purposes:
Do you accept cookies and these technologies?