Property ownership question

[Westdene Seagull]

Yeah everything is legit to far, ie BTL mortgage and i'm sure the managing agents will inform HMRC so I will have to complete a tax return each year now. I thought I could only offset my "costs" against rental income to reduce income tax each year, not any CGT.

I could "seperate" from the wife so we need 2 houses for 6 months!

Any ideas on what the CGT allowance is? I just though it was 100% for 3 years and then nothing?

Cheers

The managing agents will not inform HMRC - you need to do that. There's various rules around what deductions can be used against what tax and you'd be better off using an accountant to get your liabilities as low as possible. CGT allowance is currently £10,600.

 

[glasfryn]

we were worried when we moved to Eastbourne and had very conflicting advice and the only ones that came up with a solution were age.uk they have specialists who will advise on many things that might have to consider.
lastly one thing I do know if you have it they will do their utmost to get it one way or another

 

[Gazwag]

Slightly changing subject, but is CGT based on the gain from original purchase price, or from when I vacated property?

I bought and lived in a house 9 years ago but have now rented it out. If I decided to sell it in say 4 years, would the CGT be based on my profit from 2003 or 2012. The value has gone up a lot in the 9 years I have lived there but if prices stay flat now would I still be liable.

Also, how easy is it to avoid. As I understand it, you are not liable if it has been your main residence for 6 months in the previous 3 years. Would I have to pay council tax in that time if i was to pretend to live there

A very basis answer - Gain is Selling price (less costs) minus purchase price (plus costs) plus any capital works. Private residence relief is available for the period it was you main home plus three years after you change your main home. Gain is then reduced by allowance, currently £10,600

Its really not worth trying to cheat HMRC