When do you have to pay CGT on a house sale?

[traxx]

I'm not asking about the amount, but do you need to pay just after the sale or does it just get paid when you do your self-assesment?

[mrmr96]

You don't have to pay it if you've lived in it recently. (Principal private residence.)

If you don't qualify for that relief then it will just appear on your self assessment tax return for the year in which the property was sold.

[rs4kev]

Assuming there is something to declare, it goes on tax return covering period of sale and pay tax on 31st January following. ie sell it now and pay January 2014. Wait until next month and pay January 2015.

[rs4kev]

You don't have to pay it if you've lived in it recently. (Principal private residence.)

Care with that one, PPR only covers actual period of occupancy plus last 36 months of ownership. You may still have a liability. There are further reliefs if you have let it.

[traxx]

rs4kev said:

You don't have to pay it if you've lived in it recently. (Principal private residence.)

There are further reliefs if you have let it.

Given that I know I have a liability, what other refiefs are there?

[rs4kev]

have pm'd you

[Eric Mc]

traxx said:

rs4kev said:

You don't have to pay it if you've lived in it recently. (Principal private residence.)

There are further reliefs if you have let it.

Given that I know I have a liability, what other refiefs are there?

Why do you think you have a liability?

[Lawrence5]

H

traxx said:

Given that I know I have a liability, what other refiefs are there?

You need to share more details... A few to consider:-


Private Residence Relief
Letting Relief
Annual Exempt Amount

[mrmr96]

Lawrence5 said:

H

traxx said:

Given that I know I have a liability, what other refiefs are there?

You need to share more details... A few to consider:-


Private Residence Relief
Letting Relief
Annual Exempt Amount

Can you also offset costs of improvements you've made?

[Eric Mc]

Normally, your main residence is completely exempt from CGT.

If the property was your main residence for some of the period you owned it, you get Main Residence relief for that period plus three years.

If the property was rented out at any time as well, then you will be eligible for Commercial Lettings Relief.

If you have Capital Gains in a given tax year, you will trigger your annual Capital Gains Tax exemption - currently £10,600.

If the property is owned by more than one person, each person can make use of their own Annual Capital Gains Tax allowance for their share of the gain.

[sumo69]

There are also further exemptions if you were not occupying the home due to work commitments.

Before going further, perhaps the OP could summarise his occupation of the home as against the time he owned it with an explanation for any absences?

David

[qureshia]

traxx said:

I'm not asking about the amount, but do you need to pay just after the sale or does it just get paid when you do your self-assesment?

I believe it is self-assessment (this was the case for me on GCT on shares), if you can push the completion to beyond April 1st you may may be able to buy yourself an extra year to pay ?? (upto Jan 2015)

[sumo69]

Nope - CGT is based on the date that contracts are exchanged, unless the contract is conditional in which case the date the condition is satisfied is pertinent.

Your "advice" would lead to an omission from the relevant tax return, with all the interest and penalties that will arise as a result!

David

[traxx]

thanks for the PMs and other info

[HIS LM]

rs4kev said:

You don't have to pay it if you've lived in it recently. (Principal private residence.)

Care with that one, PPR only covers actual period of occupancy plus last 36 months of ownership. You may still have a liability. There are further reliefs if you have let it.

How long do you have to live in it before you can flip it and mitigate the CGT

[Eric Mc]

There are no set time limits. In fact, in certain cases, Main Residence Exemption can be claimed even if the property was never lived in.

[HIS LM]

Eric Mc said:

There are no set time limits. In fact, in certain cases, Main Residence Exemption can be claimed even if the property was never lived in.

Are there any experts who can advise as my friend is facing a bill of 40% of £500k, pm if you would prefer

[Eric Mc]

The top rate of CGT is not 40%.

[HIS LM]

Ok so top rate of CGT is 28%, still a shed load of cash what do the smart cookies do

[Lawrence5]

There's very little scope to do anything after the event.... It's either applicable or not

Moving into it to get some relief is one option..... But if the house is in Scotland and he lives in London it might not be an option

Has he moved abroad or anything ?