Capital Gains Tax query

[DeeFox]

A father builds a smaller home close to the family home and moves into it, (wife deceased) - he is back and forth between houses but does live in smaller one. Two of his adult children still living in large family home a year later and they are not paying any rent. When the father sells the large family home is CGT payable?

 

[Graham_07]

If the new, smaller house is indeed his de facto PPR then the hother house ceased to be his PPR on taking up residency in the new house. CGT may apply to the percentage of any gain which relates to the number of yrs owned less the number of years as PPR less last 12 months of ownership. If the house is sold within 12 months of moving it is still deemed the PPR for that last 12 months ( to allow time for a sale really ) and no CGT is due. However if someone moves out, keeps the house for another 5 years, then sells, there is an exposure there even if no income was generated from the property.

 

[fitzpatg]

hi,

1st time on this site.

we recently sold our house we lived in for 7 years. can someone please advise are we liable for capital gains tax on the profit ?

someone mentioned that we may only have 1 year to use the money otherwise we are liable for cgt.

Advice would help greatly.

thanks,

 

[Graham_07]

hi,
we recently sold our house we lived in for 7 years. can someone please advise are we liable for capital gains tax on the profit ?

someone mentioned that we may only have 1 year to use the money otherwise we are liable for cgt.

If you lived in the house throughout as your principal private residence then no CGT is due. Presently there is no rule that says you have to buy another house. ( although it is something mooted as a possible budget measure among other things )