D
duneoin
Guest
ok bought house in 1999 mortgage paid in full on house in 2002 bought new house in 2003 sister lived in old house until now. Selling house what will capital gains tax be.
See this thread:
CGT on house rented for 3 yrs
Chances are it will be something like (note that I am just dealing in round years here for simplicity and I am assuming that your sister was paying rent):
Since you presumably rented the property out within 5 years of purchase as an owner occupier you were probably also liable for a clawback of stamp duty (i.e. what an investor would have paid on the original purchase less what you actually paid which was possible nothing) at the time for first rental. If this was never paid then it is still outstanding, should be paid ASAP and interest and penalties may apply.
You should get professional advice as my calculations are only illustrative and I have a habit lately of making basic mistakes with these!
CGT on house rented for 3 yrs
Chances are it will be something like (note that I am just dealing in round years here for simplicity and I am assuming that your sister was paying rent):
- Period of ownership: 1999-2007 = 8 years
- Period of PPR occupancy: 1999-2003 = 4 years
- Period of rental (?): 2003-2007 = 4 years
Since you presumably rented the property out within 5 years of purchase as an owner occupier you were probably also liable for a clawback of stamp duty (i.e. what an investor would have paid on the original purchase less what you actually paid which was possible nothing) at the time for first rental. If this was never paid then it is still outstanding, should be paid ASAP and interest and penalties may apply.
You should get professional advice as my calculations are only illustrative and I have a habit lately of making basic mistakes with these!