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Money matters

Capital gains/property tax

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Capital gains/property tax

Postby wendy.bruce2 » Mon 25 Oct 2010 07:55 GMT

We are considering moving (just round the corner!!) and I believe we will be liable for some sort of capital gains tax. We have been here under three years. Does anyone know what costs might be involved in this, because given stamp duty etc, the costs of selling/buying seem to be going up by the minute!! :?
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Postby gozomark » Mon 25 Oct 2010 08:20 GMT

CGT is payable unless its been your primary residence for atleast the last 3 years.

If owned for more than 5 years, you pay 12% of the sale price.

If owned for less than 5 years, you can choose either 12% of the sale price, or a higher amount (35% ?) on the capital gains, after taking into account all improvements carried out (for which you have receipts for).

how short of the three years are you ?
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Postby wendy.bruce2 » Mon 25 Oct 2010 08:34 GMT

Like about 2 years short!! I am sorry, but I can't get my head around the options. I can pay 12% on the selling price or 35% on the actual profit - if any? As there is not likely to be any profit, then presumably I should go for the 35% option? (or not!!) :? :roll:
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Postby gozomark » Mon 25 Oct 2010 08:38 GMT

correct, but I'd suggest talking to a notary about it - your purchase and selling price might have to be agreed to be "fair"
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Postby wendy.bruce2 » Mon 25 Oct 2010 08:52 GMT

OK, thanks Mark
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