CGT question on a unit.

[attrill]

Hello All

I am about to sell a unit that myself and my girlfriend bought in 1997. In 1999 we split up and I bought the unit in my name only and paid her out. I lived there myself until 2005.

In 2005 I rented the unit out and it has been an IP since that time.

Hopefully someone can answer this for me: Will I pay CGT worked out from the price paid in 1997, or the current mortgage started in 1999?

Is CGT as simple as saying, PPR for 8 years (or 6 years) and then IP for 8 years or is it a more complex calcualtion, as most of the capital growth occured up until 2005, then not so much since?

Many Thanks in advance. This will end up with my accountant, but I would like to know the lay of the land first.

J.

 

[Terry_w]

Hello All

I am about to sell a unit that myself and my girlfriend bought in 1997. In 1999 we split up and I bought the unit in my name only and paid her out. I lived there myself until 2005.

In 2005 I rented the unit out and it has been an IP since that time.

Hopefully someone can answer this for me: Will I pay CGT worked out from the price paid in 1997, or the current mortgage started in 1999?

Is CGT as simple as saying, PPR for 8 years (or 6 years) and then IP for 8 years or is it a more complex calcualtion, as most of the capital growth occured up until 2005, then not so much since?

Many Thanks in advance. This will end up with my accountant, but I would like to know the lay of the land first.

J.

You have purchased 2 halves - think of it as 2 separate purchases.

When you bought her half was it done as part of the property settlement due to the relationship breakdown or just a normal purchase?

Actually this may not matter much as the cost base will be the value on the date you moved out.

 

[attrill]

Thanks for the advice Terry. I hadn't thought of it as buying the unit in two halves.

J.