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waveattack09
Guest
Hi all - I've got a question on calculating a Capital Gains Tax liability on the sale of a rented house that used to be a principal private residence (PPR). Is the period during which it was a PPR exempt from Capital Gains Tax i.e. is the CGT calculated proportionally over the whole number of years of ownership?
For example, let's say the following;
Any help appreciated!
For example, let's say the following;
- I bought a house in August 2001 and sell it now - so I have owned the house for 10 years.
- I bought the house for 100K and am selling it for 200K.
- I lived in the house from August 2001 - August 2007 and rented it from August 2007 to now (i.e. 3 years out of the 10).
- 100K (i.e. the 7 years I lived there are ignored)
- 30K (i.e. 100K x 3/10 - so I only pay CGT for the period in which it was NOT my PPR)?
Any help appreciated!