I'm thinking of selling my first IP because it's increased in value enormously and the rental return is absolutely rubbish at the moment.
Just looking at capital gains tax, and it seems a bit complex. I originally bought the flat to live in in 1998, lived there for 5 years, bought a house with my wife in 2001, but rented it out for 2 years before moving in in 2003. We have since sold that house and upgraded, claiming PPOR exemption for that place last year when we sold it and bought a new one.
If I were to sell the IP, how would I calculate the CGT I'd need to pay? I estimate the value has increased by about 250% since I bought it, but can't see much further growth for quite a while as rents haven't kept pace with prices in the area. Is there anyway to minimise the CGT or is it too late now (it's a one bedroom flat, so moving in there for a family with 2 kids isn't really an option!).
Just looking at capital gains tax, and it seems a bit complex. I originally bought the flat to live in in 1998, lived there for 5 years, bought a house with my wife in 2001, but rented it out for 2 years before moving in in 2003. We have since sold that house and upgraded, claiming PPOR exemption for that place last year when we sold it and bought a new one.
If I were to sell the IP, how would I calculate the CGT I'd need to pay? I estimate the value has increased by about 250% since I bought it, but can't see much further growth for quite a while as rents haven't kept pace with prices in the area. Is there anyway to minimise the CGT or is it too late now (it's a one bedroom flat, so moving in there for a family with 2 kids isn't really an option!).