Selling an affordable house

J

jen007

Registered User
Messages
13
Hi guys,

Just wondering do you pay capital gains tax if you sell your affordable house.. I am living in mine with 4 years and have recently got engaged to somebody I met after I got the house. He is a farmer so down the line we will be moving to a house he's building on the farm. Obviously I don't want to sell the house but because you can't rent it (I think!) I may not have any other option.

Anybody had any experience with this??

Jenx
 
jen007 said:
Just wondering do you pay capital gains tax if you sell your affordable house..
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If it was always your PPR/home and you sell within 12 months of vacating it then no CGT applies. Just check in case there is any clawback of any profit made under the scheme if you sell before a certain time period is up (not sure if that applies only to tenant purchase schemes or the like?).
 
Thanks for that Clubman, don't even want to think about leaving my house yet but I know next year I'll have to look into it so just wanted to know about the CGT
 
If you sell an affordable house within 10 years you must pay back the percentage discount that you received. Say you paid 100k but the market value of the house was 125k, you received a 20% discount on the house price. If you now sell for 150k, you will be obliged to clear the mortgage and pay back 20% x 150k i.e 30k to the local authority.
 
Just to clarify - that is the sort of clawback to which I was referring above. This is not a CGT issue though.
 
I know about the clawback was just wondering if they would charge the CGT if a profit was made. Thanks for ye're replys
 
Keep it as your PPR and rent out a room, you can do that, better than getting rid of it altogether
 
Thanks Bob,

It's definatley a possibility to rent out a room would depend how much extra we'd have to put towards the mortgage I suppose and if we could afford it.. I have another year before I'd have to make a decision anyway so won't stress about it yet.. Can I ask a stupid question what does PPR stand for sorry!!!
 
Bob the slob said:
Keep it as your PPR and rent out a room, you can do that, better than getting rid of it altogether
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This is only possible as long as the original poster actually remains an owner occupier. From the original post this will not be indefinitely.
 
Bob the slob said:
Keep it as your PPR and rent out a room, you can do that, better than getting rid of it altogether
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If you are not living there and rent a room it is not your primary residence, doing that would be fraudulent.
 
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