Saving CGT on a 2nd home

[Big-Bobbo]

Hello,

I bought my flat many years ago and have lived here constantly ever since.

I recently inherited a house which I am letting.

I understand I will have to pay CGT on the gains made on the house if I ever sell it, regardless of whether I sell my flat and move into the house.

The taxable profits are the increase in value from the date of inheritance to the date I moved in. This regardless of how long I live there.

Does anyone know a workaround for this.

I'm thinking this is a fairly common situation.

thanks for your advice

[Lee Young]

There are various extensions of the main residence relief when one disposes of a property that has been your main residence at some point when you owned it. Lettings relief and the last 18 months are the main ones.

If you are married you may want to transfer some of the property into your spouse's name and thereby have the benefit of two annual exemptions.

Best work around is not to sell it, therefore not incurring a taxable gain.

[Big-Bobbo]

Thanks Lee,

I will investigate the relief you mentioned.

Would you advise me getting a solicitor to deal with it for me ? or perhaps an accountant ?

regards

[Lee Young]

Whichever you go to, ensure he or she is a tax adviser as well!