CGT - sale of property

S

Star99

Guest
We bought a new house last May, and have had our previous home, an apartment, vacant in the meantime. Is it the case that we will not be subject to CGT on the sale of the apartment now as there is a years grace given. Or will our new home be considered our principle private residence and we have to pay CGT on the apartment ??
 
Star99 said:
Is it the case that we will not be subject to CGT on the sale of the apartment now as there is a years grace given.
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Yes - all other things being equal. Do bear in mind that if you don't manage to get rid of the apartment by May (which would not be unusual in the current climate) there may well be a CGT implication.
 
Where an owner occupier doesn't dispose of his/her former PPR within 12 months of vacating it and moving to another PPR then some portion of any resale gain will be assessable for CGT even if it is vacant/not rented during that 12 months period.
 
pinkyBear said:
Are you sure about CTG, if the apartment has been vacent..
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Not sure what this means....

But, I'll assume the poster is questioning if CGT would be payable as the apartment had been left vacant and not rented out.

CGT has nothing to do with renting. It's based on a property being a PPR (or not).
In this case it's not the OPs PPR (anymore), so the OP has one year to sell (the final 12 month exemption, started when the property ceased being the PPR) before a CGT liability comes into effect.

SD is linked to whether a property is rented or not. Once rented (within five years of purchase under an OO exemption) a SD clawback can/will arrise [if rented under anything other than the RaRS]. It's calculated on an all or nothing basis (you either pay or you don't, not like CGT where a portion/percentage of the CGT can be payable).

The two are very different with totally different rules as to how much, when, what etc. has to be paid.
 
Many thanks for the detailed reply Satanta. Very helpful.
 
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