What percentage of sale price has CGT liability?

Just a quick question...

My friends are selling their PPOR. Their PPOR was previously their IP for 4 years before they moved in and lived in it for the last 5 years (they originally bought it as an IP and had it immediately rented out). Being an IP for the first few years, what percentage of the sale price would be liable for CGT?
 
In very rough figures, the capital gains portion would be 4/9ths of 50% (owned for more than 1 year) of the profit. If the property was in joint names each party would then declare half of the above figure.
Marg
 
In very rough figures, the capital gains portion would be 4/9ths of 50% (owned for more than 1 year) of the profit. If the property was in joint names each party would then declare half of the above figure.
Marg

Thanks Marg.

That was roughly my guess too... but just wanted to confirm with somebody first before I tell them. 50% will have CGT because they've had it for more than a year, then get 4/9th of that 50%. But, as always, I'd advise them to consult an accountant to confirm.
 
Top