CGT on second property

[mat]

my wife and I purchased a new family property one year ago and due to the limited time scale to complete were not able to market and sale our first property (which we have owned for 15 years). In order to cover the mortgage we rented the first property out and are still doing so since we have been unable to find a purchaser. when we do eventually sell the property will we be liable for any CGT?

[Ian McTernan CTA]

This depends on when you sell the old property. The CGT liability will be based on the number of years PPR as against renting, with the last 36 months deemed to be PPR in any case. You will also have two lettings exemptions to set against any gains, plus two annual exemptions. It will be quite a long time before you will have to pay any tax.

Ian McTernan CTA
McTernan Associates Ltd
Chartered Tax Advisers
ian@imcternan.com

[hail-hail]

Hi, I am in a similar situation.

I have owned my PPR property for last 2 years.
I have owned another flat for 7 years.

Lived in the flat for 1 year, then rented a flat, as a tennant, due to work commitments for 4 years.
Purchase house 2 years ago and couldn't sell my flat. It has never been rented.

I wish to sell the flat, what CGT will I be due to pay, how can I reduce this amount, as I am not desperate to sell.

Also, would it be worth waiting for the Property Investment Funds to become available and use this as my tax free pension?

thanks

alan