asdfg said:One thing to consider is to have the mortgage on the old property (investment) as high as possible i.e. remortgage/release equity as you can offset mortgage interest against tax and have a lower mortgage on the new house.
Have you already paid the stamp duty clawback on owner occupied properties rented out within five years of purchase or is that liability outstanding?noobie99 said:Prop A was PPR for 4 years and rented for 6 years
Yes - but it's actually ((6-1)/10) = 50%.so it's now 10 years since original purchase and I have a CGT on 50% ((4+1)/10) of the existing property value?
The [broken link removed] explains how CGT indexation (up to December 31st 2003 or thereabouts - not applicable thereafter) of the purchase price works.Could someone clarify how the inflation adjustment is factored in when determining eventual CGT.
So what does this mean above if it's not that it was rented out in year 5 (and thus subject to the SD clawback)?noobie99 said:The stamp duty clawback is outstanding as I've not rented the place yet.
Prop A was PPR for 4 years and rented for 6 years so it's now 10 years since original purchase
No but the CGT issues are as outlined above.Does it have a bearing on the eventual CGT?
No - indexation stops at December 31st 2003/4 (not sure which).Has there been anything to replace indexation?
Mortgage interest relief (either owner occupier mortgage interest relief or the ability of investors to offset mortgage interest against rental income) has nothing to do with CGT issues.Mortgage interest relief I guess.
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