Capital Gains Tax

S

sutty

Guest
I have a question.

I own an apartment for the past year and a half.

Myself and my fiance have bought a site (paid stamp duty on it) and have gotten a mortgage in both our names and are building a house on it.

The house will be my husband to be's principle residence.

We will most likely sell this house before we get married but he will live in it as his principle residence before this.

Are there capital gains implications? What are they, etc?
 
As I'm sure you are aware there is no CGT when you sell your principal place of residence.

You may be worrying about how long he has to stay or live in it before he can sell and still declare it as his ppr. There is no explicit time period. It will be up to him to declare it or not as it is a self assessment tax. Naturally the revenue might take a different view on it if they feel it is an investment vehicle but you will have to deal with that if it happens.
 
You and your fiance bought the site but only he will live in it. If he does live in it and then sells it he can claim Principal Private Residence Relief but you can't unless you also live in it.
How long between completion of the house and the proposed sale?
 
It'll probably be about 6 months. And yes, like I said, I will be living in my apartment and he will live in this house until we sell it.

What do you mean by he can claim and I can't? Do you mean that by selling something we both own, his half won't be liable to tax but my half will?

Thanks.
 
Exactly. Six months is a bit short a period of ownership it and the Revenue could see him a property developer trying to evade tax.
If you sell so quickly after house is completed then there is VAT to consider as well under the new rules.
 
Right so you reckon we'll have to pay capital gains tax on any profit (the full whack of 20%) and also VAT under the new rules??

Thanks.
 
You must log in or register to reply here.
Back
Top