Capital gains tax

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lala

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I have a ppr[in my name] and another house which i bought with my partner about 2 years ago and have rented only for the last four of months.We are now considering upgrading houses.My question is, as the rented house has the higer profit value i am considering selling this to part finance the upgrade,is this a wise move i.e. to sell the rented house and how much CGT would i be liable for??Is CGT only paid for while the property is rented and atwhat rate?? many hanks in advance
 
could you afford to buy the new house you want and rent out the PPR and the rental property ?
then there would be no sale and CGT to pay.
could your partner not have the rented house as their PPR and this may help reduce the CGT to be paid,i'd check this out.
 
CGT is due on all gains but you get relief for all periods in which you occupied the property as your PPR - thus gains on your PPR are not taxed.

First calculate the gains = proceeds - costs

Then calculate
1) Period of Ownership = Y months.
2) Period of Occupation as PPR = X months. You are allowed to consider the last 12 months of ownership as a "period of occupation".

Relief is calcualted as = Gain * X / Y
Chargeable gain = Gain - Relief
Tax = Chargeable less annual allowance (1270) * 20%
 
CGT is due on all gains but you get relief for all periods in which you occupied the property as your PPR - thus gains on your PPR are not taxed.
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So if i buy an investment property, don't rent it out and use it as a summer house, what way would i be taxed.
Thanks
 
But why should you get PPR Relief when its not your PPR? Surely thats the whole point of PPR Relief???
 
Where a property that has been let is disposed of, Capital Gains Tax may arise
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I got this quote in the revenue guide to rental income. Now not wanting to repeat myself, as i said - i will not be letting out the property, it will be for my own use three to four months of the year.
 
Whether the property is rented out or not has no bearing on the CGT liability. PPR relief is what it says on the can - Principal Private Residence relief. You can only have one - I don't think the Revenue will looko on a holiday home as a PPR - even if thery did, you are then, going to be liable to CGT on the other
 
jpd said:
Whether the property is rented out or not has no bearing on the CGT liability. PPR relief is what it says on the can - Principal Private Residence relief. You can only have one - I don't think the Revenue will looko on a holiday home as a PPR - even if thery did, you are then, going to be liable to CGT on the other
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O.K - thank you
 
if my partner moves into the house now after it has been rented and it is now her ppr will we still have to pay cgt because it was rented at one stage??
 
if my partner moves into the house now after it has been rented and it is now her ppr will we still have to pay cgt because it was rented at one stage??
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i don't see why you should.. if it's her ppr then it's her ppr
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I am not so sure about this :found here page 15 part 5
The period of ownership does not coincide with period of residence and if this discrepancy is not due to employment then I believe CGT may apply.
as far as I can make out Full relief only when House is PPr (period of owernship= period of residence).
 
Also maybe be worth noting "
Full exemption may not be due if only part of the house has been used as the individual’s residence, in
which case an apportionment is made to arrive at the exempt portion of the total gain. This may
happen where the house is used partly for business purposes or where rooms in the house have been
let." from same source.​
 
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