ARCH said:You have heard incorrectly or been misinformed. 20% CGT will apply if the gain is an investment gain if you the transaction is one of a trade your marginal tax rate would apply . This is unlikely unless you buy and sell property frequently.
That's interesting - I've never seen these figures mentioned before. Did you get hit with penalties and interest? If so did you file the return with the assistance of an accountant/tax advisor in order to maximise the chances of mitigating these charges?ippd said:The clawback fines are quite large,
You have 30 days to pay from the day tennants first move in.
10% fine if you pay it within 6 months of renting the property.
20% if you pay within 6-12 months.
30% if you leave it over 12 months.
That's not including an daily interest rate of 0.0273%
ClubMan said:I don't know but I do know that if I was faced with potentially high interest/penalties then I would certainly pay an accountant/tax advisor a few bob just in case they could recommend ways to reduce the bill!
The exemption is also restricted where the taxpayer has not lived in the house for long periods.
However, a period of up to twelve months immediately before the end of the period of ownership is
treated as a period of occupation even though the owner may not have been actually living in it during
that period.
I too will be in this situtation of renting my first home (and selling it within a year of moving out) and moving into a new property. As regards the Stam Duty claw back, does the 12 months window apply to it also?
if so could i leave it idle until the 5 years is up and then rent it without any SD clawback?
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