Capital gain tax for main residential

Viewing 5 posts - 1 through 5 (of 5 total)

Rickey
Participant
@wdi826
Join Date: 2017
Post Count: 2
April 9, 2017 - 9:18 pm
Hi expert,
I’m new to this forum and really appreciate any help. I’m currently reside in my main residential for the past 6 years. I’m planning to build a new house for main residential purpose and plan to move into it immediately upon completion sometimes next year. I would like to find out if I’m subjected to any capital gain tax for the new house?
Regards,
Rickey
Benny
Moderator
@benny
Join Date: 2002
Post Count: 1,416
April 9, 2017 - 9:34 pm
Hi Rickey,
You wouldn’t be assessed for CGT on the new house until such times as you were about to sell it, and any CG Tax at that time would depend on “what else had happened between now and then”.
What are your plans for the OLD home though? Are you planning to sell it? It sounds like it might be CGT exempt based on your words – but I am not an adviser, so don’t take my answer as gospel. It also depends if it was your PPOR (Principal Place of Residence – or home) for the whole time since you bought it. If not, then there “might” be some CGT to pay when selling it, depending.
Benny
Rickey
Participant
@wdi826
Join Date: 2017
Post Count: 2
April 9, 2017 - 9:52 pm
Hi Benny,
Thanks for the prompt reply, I intend to sell my OLD home and move to my newly built house upon completion. I am very certain that I will be exempted for the CGT for the OLD home, I would like to find out if I am also exempted for my this newly built home (as I read somewhere that the overlapping time of six months for 2 PPOR can be applicable) Thanks again.
Terryw
Participant
@terryw
Join Date: 2001
Post Count: 16,213
April 10, 2017 - 12:53 am
Benny wrote:
Hi Rickey,You wouldn’t be assessed for CGT on the new house until such times as you were about to sell it, and any CG Tax at that time would depend on “what else had happened between now and then”.
What are your plans for the OLD home though? Are you planning to sell it? It sounds like it might be CGT exempt based on your words – but I am not an adviser, so don’t take my answer as gospel. It also depends if it was your PPOR (Principal Place of Residence – or home) for the whole time since you bought it. If not, then there “might” be some CGT to pay when selling it, depending.
Benny
Not enought informaton to answer, but possibly exempt. But the existing house would then be subject to CGT.
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Benny
Moderator
@benny
Join Date: 2002
Post Count: 1,416
April 10, 2017 - 7:39 am
Hi Rickey,
I would like to find out if I am also exempted for this newly built home (as I read somewhere that the overlapping time of six months for 2 PPOR can be applicable) Thanks again.
Ah, there you go – that is the real question – and that is one that I will leave to Terry.
First, here’s a few “reasonable man” thoughts thrown in that might apply in your case:-
I have heard of that law – I suspect it applies where you might have bought another existing home and then took several months to move into it (for one reason or another).
In the case of a new home being built, there would be less likelihood of any problem as you cannot move into any new place until it is habitable, so if it takes more than 6 months to build, so be it. But, if you delayed moving into it once it is built, then there could be some extra things you need to know about CGT – and that is where Terry comes in.
Benny