Tax question - capital gains on property
Discussion
A hypothetical question. If I had got married in May 2007, and started renting out my flat then, and sold it in November 2010 (unfortunately just outside the three year period at which no CGT needs to be paid), presumably I would only need to pay CGT on any rise in value between May 2007 and November 2010 rather than between when I bought and sold the flat?
I think the flat would in fact have fallen in value between May 2007 and November 2010, so am I right in thinking if this i was the case no CGT would be due?
I think the flat would in fact have fallen in value between May 2007 and November 2010, so am I right in thinking if this i was the case no CGT would be due?
This has been done quite a few times on here. Worth searching for the old threads. Some key points however -
1) The gain is calculated by reference to the whole ownership period. You don't just look at the rise or fall in value over the particular period you may be liable to CGT.
2) You also get relief for the period the property is let. So in your hypothetical scenario, you might not actually be liable for CGT. Look it up on HMRC's website.
1) The gain is calculated by reference to the whole ownership period. You don't just look at the rise or fall in value over the particular period you may be liable to CGT.
2) You also get relief for the period the property is let. So in your hypothetical scenario, you might not actually be liable for CGT. Look it up on HMRC's website.
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