Hello,
When I bought my home (last year) it came with tennants, so we rented it out for the first 6 months of ownership before moving in. So when it comes time to sell the PPOR, how is the CGT calculated. One friend told me that it's based on the gain between when we bought our flat to when we finally stopped renting it and moved in. Therefore, if we had been smart and got a valuation of our home as soon as we moved in that showed there was no gain in value since we bought it, then we would never have to pay CGT. My friend told me this was a change in the tax law.
However, I spoke to an accountant the other day (who I personally think isn't very up to date with the latest changes in tax law and therefore I'm questioning what he said). He told us that this wasn't the case, and that the CGT would be
(number of days rented)/ (no. of days owned) * (taxable gain)
Which one is correct???
Cheers
John
When I bought my home (last year) it came with tennants, so we rented it out for the first 6 months of ownership before moving in. So when it comes time to sell the PPOR, how is the CGT calculated. One friend told me that it's based on the gain between when we bought our flat to when we finally stopped renting it and moved in. Therefore, if we had been smart and got a valuation of our home as soon as we moved in that showed there was no gain in value since we bought it, then we would never have to pay CGT. My friend told me this was a change in the tax law.
However, I spoke to an accountant the other day (who I personally think isn't very up to date with the latest changes in tax law and therefore I'm questioning what he said). He told us that this wasn't the case, and that the CGT would be
(number of days rented)/ (no. of days owned) * (taxable gain)
Which one is correct???
Cheers
John