Interested in others views.
We have a property right now in a HDT. We plan to move into it and live in it long-term. By doing so however we will lose all cost deductibility (no longer rented out) yet still accumulate a CGT liability in the event of any future sale.
If we were never to sell it then no CGT, so no big deal, but can't be absolutely sure that's the future. To sell it out of the trust now and make it a PPOR (for future CGT benefit) we will incur about 100k CGT and around 85k stamp duty.
If I knew we would sell in the future the decision would be easier (sell it to ourselves and take the CGT and SD hit now as it will cost more in the future), also if I knew the Government was going to apply CGT to PPOR's anyway in the future, that would also give me a direction. I don't know these answers, but on balance, I think we're best to leave it in the HDT and just treat it as a PPOR with accumulating CGT in the event I ever sold. Assumption being that I'd otherwise spend 185k today on a punt that I'd want to sell or that the government won't change CGT rules in the future anyway.
I know the above is a bit of a waffle, but appreciate any views if you have them!
We have a property right now in a HDT. We plan to move into it and live in it long-term. By doing so however we will lose all cost deductibility (no longer rented out) yet still accumulate a CGT liability in the event of any future sale.
If we were never to sell it then no CGT, so no big deal, but can't be absolutely sure that's the future. To sell it out of the trust now and make it a PPOR (for future CGT benefit) we will incur about 100k CGT and around 85k stamp duty.
If I knew we would sell in the future the decision would be easier (sell it to ourselves and take the CGT and SD hit now as it will cost more in the future), also if I knew the Government was going to apply CGT to PPOR's anyway in the future, that would also give me a direction. I don't know these answers, but on balance, I think we're best to leave it in the HDT and just treat it as a PPOR with accumulating CGT in the event I ever sold. Assumption being that I'd otherwise spend 185k today on a punt that I'd want to sell or that the government won't change CGT rules in the future anyway.
I know the above is a bit of a waffle, but appreciate any views if you have them!