Lower West Stander
Well-known member
The purchase price is what you pay. At present, on second homes, the CGT allowance is £12k per annum. On a primary residence this would need to be higher, say 6% of the purchase price p/a. This would mean that the CGT allowance on a £300k house would be £18k pa. After 5 years you will have accumulated £90k in CGT allowances. If you sell for £390k or less there would be no CGT to pay. Obviously it would become complicated because the valuation of any recognised improvements would need to be factored in and omitted from the selling price before assessing for CGT.
But the CGT allowance doesn’t just apply to property. And you can also crystallise losses against it. I think you’re over simplifying a bit....
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