CGT on Home business moving premises

H

hutch

Guest
Hi

Now let me try and explain my situation and ask a clear question.

I purchased a house with a cousin a 6 years ago. We were both 1st time buyers. 4 years ago I set up a business from the house and the addresses is registered (not a limited company just a self employed) etc. I am now selling my half of the house to my cousin and am buying a bigger house to continue my busines from.

So my questions are

1. What (if any) will my CGT? liability be by selling my half of the house AND if there is an implication then can I write off costs of moving my home/business solicitors fees and set up of new premises etc to the business.

I hope I have explained things properly.

Cheers
 
You need to talk to a tax consultant / professional. As you set up a business from the premises you may get caught for stamp duty clawback on the full amount of the original cost of the property. If you have been writing off a proportion of the household expenses to the business you may get caught for CGT.

Similar situation if buying a new property to continue running your business from.

Your mortgage interest relief may also be affected.
 
asdfg said:
As you set up a business from the premises you may get caught for stamp duty clawback on the full amount of the original cost of the property..
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Really? I can't think of ANY scenario where this would apply based on the facts as set out by the OP.

asdfg said:
If you have been writing off a proportion of the household expenses to the business you may get caught for CGT.
Click to expand...
This is indeed a possibility and one that would require to be reviewed prior to the sale.
 
Really? I can't think of ANY scenario where this would apply based on the facts as set out by the OP.
Click to expand...

I was just letting the OP know of a possible problem in relation to what he was doing or intending to do in relation to stamp duty. I did tell him to get professional advise first.

"Is it possible that the above situation could come under the heading of Stamp duty for non residential property" ie Part residential / part business

See [broken link removed] and scroll down to Stamp duty for non residential property.
 
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