andrea said: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.
Hi Evelyn - His PPR is the house where he lives. Running up a few utility bills will not change this. To me, this sounds like tax evasion (illegal), not tax avoidance (legal).evelyn said:He has been advised by his accountant to run up a few utility bills on this as he needs to treat this as his PPR. Is he taking a major risk here in avoiding CGT or is he within his rights as he originally bought land with an old house unsuitable for living in. Does he need to advise the tax office two years in advance that this is his PPR.
We use cookies and similar technologies for the following purposes:
Do you accept cookies and these technologies?
We use cookies and similar technologies for the following purposes:
Do you accept cookies and these technologies?