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Where Taxpayers and Advisers Meet

Will I have to pay CGT

georgewoodley
Posts:2
Joined:Wed Dec 19, 2018 10:44 pm
Will I have to pay CGT

Postby georgewoodley » Wed Mar 06, 2019 10:05 pm

Hello there,

I was just wondering if your able to help me with some advice regarding my property, I live in Norfolk, England. I brought my first house in March of 2016 which I then knocked down and rebuilt a new build. I spent till Christmas of 2017 till I was able to move in so I moved out of my parents and into my property that was now liveable, I've managed to get everything done and got my completion certificate in November of 2018, I was thinking about selling it about April time this year so that would mean I've owned it for around about 3 years and I've actually lived there for a year and 4 months roughly. So what I was wondering is if I sell my property will I be taxed in some way on it or is that only when you have a second property as this is my first house and main residence?
If this is something you can help with that would be great.

Thanks George Woodley

AGoodman
Posts:1738
Joined:Fri May 16, 2014 3:47 pm

Re: Will I have to pay CGT

Postby AGoodman » Mon Mar 11, 2019 2:42 pm

You're bigger risk is income tax. If you acquired the house in order to renovate and sell it, that is development and profits are subject to income tax.

If that isn't the position, your PPR position is probably okay (assuming you moved in properly and gave third parties your new address etc). It remains risky if you always intended to sell once renovated. If that is the case, HMRC could challenge it on the grounds you never intended to occupy long term.

The true position on PPR is more nuanced. Others may have more detail.

maths
Posts:8507
Joined:Wed Aug 06, 2008 3:25 pm

Re: Will I have to pay CGT

Postby maths » Tue Mar 12, 2019 4:44 pm

Assuming principle private residence status for CGT (i.e. no income tax complications) you occupied from December 2017 to say March 2019 month of sale.

Gain attributable to last 18 months is exempt (i.e. October 2017 to March 2019) leaving period March 2016 to October 2017.

ESC D49 may apply to period March 2016 to Oct 2017 and if it did there would be no CGT charge on sale.


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