Capital Gains Tax

W

Whatever

Guest
Hi,
I am currently debating selling my house and building an extension on to my parents house (they care part-time at present but will lead to full-time so want to sell up and move back in with my daughter but we need to build on to have enough space!) I know by selling property I am liable for capital gains but I need to use the money to build the extension - is it possible to avoid capital gains as the money is going back into property???

S
 
Whatever said:
I know by selling property I am liable for capital gains
Click to expand...
Not if it was your PPR (Principal Private Residence) and was never rented out. Yes if it is or was ever an rented investment property.
but I need to use the money to build the extension - is it possible to avoid capital gains as the money is going back into property???
Click to expand...
No - rollover relief was abolished several years back.

If in doubt get expert advice.
 
Oh right, thanks! I though if I sold up I would have to declare any profit and pay CGT - property was never rented out. Will need all the money to build extension on for me and junior!
 
You might want to get an expert advice if it involves lots of money (must be). You don't want the Revenue coming back to you in in 5 years time and say that you miscalculated or something.

Remember that if you sell it before 31 Oct this year, you have to pay preliminary CGT.
 
Karangka said:
You might want to get an expert advice if it involves lots of money (must be). You don't want the Revenue coming back to you in in 5 years time and say that you miscalculated or something.
Click to expand...

No need to get professional advice in this situation in my opinion. If OP is sure it was his PPR for duration then no CGT. It's not too difficult to work out.

Karangka said:
Remember that if you sell it before 31 Oct this year, you have to pay preliminary CGT.
Click to expand...


What's this supposed to mean. If it was liable to CGT and was sold before 30/9/06 tax is due 31/10/06. If sold between 1/10/06 - 31/12/06 tax is due 31/1/07.
 
There is no capital gains tax on a PPR. No need to get professional advice in this instance.
 
You must log in or register to reply here.
Back
Top