We moved house but havent yet sold our old one yet may rent it, how long does it remain resi prop for CG Tax?
Answer:
Provided that a house has at some time been your own or main residence (PPR) the last 3 years of ownership are always exempt in calculating CGT.
You also have up to 2 years to notify the HMRC if you have 2 homes which you would like to be seen as your main residence.
If you have moved, then the old house already is a second property. You can only have one primary residence.
I fully agree with the previous answer.
Now that you are the owner of two properties, one has come into the capital gains bracket when you sell.
Depending on the gain and if the property is singly or jointly owned there is the matter of the tax allowance before capital gains is payable.
I believe the current rule is, no capital gain if you lived in the home for two of the last five years.
personally I would let it for a short 6 month term.
since as the other answers stated you have 2 years you might as well have someone else paying your mortgage for you whilst you market the property plus house prices may rise in the next six months bringing you an even nicer bonus!
Good luck - would talk to a couple of letting/estate agents about this properly.
I do not recommend your rent your previous house. A rental property is not appealing to buyers and you simply can't control the actions of tenants.
If you rent the home and live in another, you're out of luck for the 1st home to be a residential property. It's become a source of income once you rent it.
It's cheaper to just sell it quick.
unless you sell it and make the buyer pick up the mortgage, then you'll still have to make payments.
and if the house has been your primary residence (lived there for more than 6 months i believe, could be wrong), if it has been your primary residence for 2 out of 5 years, then the gain is excluded when you sell for a gain up to 250K, or 500K for a married couple
If you own multiple properties you can nominate which is your 'Primary Residence'.
When you sell this then your current address will become your Primary Residence.
As long as it's done within two years of you moving out then there's no problem.
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