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Start date for capital gains
Hi All, any help with this query would be appreciated as I'm struggling to find out the answer. Many years ago we did a self-build. There were two properties on the site one in which we lived in and one which we rented out. Our main property was the last to be completed and so we lived in the rental one for the first couple of years. It's clear that we have to pay CGT on the rental property (but can claim lettings relief and relief for the period in which we lived in it) but less clear whether we should pay CGT on our main residence for the period (4 years) that we didn't live in it because it was being built. Thanks in advance for your thoughts.
Re: Start date for capital gains
If it wasn't built, it wasn't a house. Ignore it until the date you occupied it.
With a pinch of salt take what I say, but don't exceed your RDA
Re: Start date for capital gains
Not sure i can agree with pawncob.
There appears to be one pice of land on which there are now two properties.
For CGT the period of ownership commences from date of land acquisition. ESC D 49 is inapplicable to the period prior to moving in to the main residence.
Hence the first 4 years of non-occupation fall subject to a CGT charge.
There appears to be one pice of land on which there are now two properties.
For CGT the period of ownership commences from date of land acquisition. ESC D 49 is inapplicable to the period prior to moving in to the main residence.
Hence the first 4 years of non-occupation fall subject to a CGT charge.
Re: Start date for capital gains
But if it's only a piece of land, there's no increase in value, hence no gain during that period.
With a pinch of salt take what I say, but don't exceed your RDA
Re: Start date for capital gains
On any sale of a dwelling the period of ownership does not commence from the date of occupation as a residence but the date of acquisition of the land upon which at a later date the dwelling was constructed.
Thus, an apportionment of the overall capital gain is necessary on any sale.
Thus, an apportionment of the overall capital gain is necessary on any sale.
