Am currently trading up but for living reasons may want to live in my current home (which will become the invesment property) for another year after purchasing the new home. Hence want to rent out the new property for the year. Whats the tax implications if the current home will have an interest only mortgage on it and I have rental income from the new home?
Just on that, hypothetically, if I stay in this house for another 5 years, renting out the new home, then move out of current one to the new one and sell my current one, should there in theory be any CGT on any profit Ive made on my current home whereas there definitely would be if I did it the other way.
Also whats there to stop me telling the taxman that I did that even if I didnt? (Asides from the fact its probably illegal tax evasion). Is it written anywhere that of 2 properties that someone owns 1 is defined as the investment property and the other as the PPR?
thanks.
Just on that, hypothetically, if I stay in this house for another 5 years, renting out the new home, then move out of current one to the new one and sell my current one, should there in theory be any CGT on any profit Ive made on my current home whereas there definitely would be if I did it the other way.
Also whats there to stop me telling the taxman that I did that even if I didnt? (Asides from the fact its probably illegal tax evasion). Is it written anywhere that of 2 properties that someone owns 1 is defined as the investment property and the other as the PPR?
thanks.