I have a friend(!) who has a second home, however is not letting it out. To avoid CGT. Is there any truth in this?
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Can you avoid CGT on a second home by not letting it out?
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No. Which ever way you look at it.
The exemption hinges around one home you live in, not how other properties you own are used. -
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Even if it was possible, it seems pointless to lose out on rent to avoid paying tax.
You're only paying CGT on the rise in value of the property when you sell it. You're missing out on thousands from rent every year.
Maybe this would be viable if you bought a property that rocketed in price in a very short space of time.Comment
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You can flip your second home with your first home to avoid paying CGT. This is how a large number of MPs were exposed in the expenses scandal a couple of years ago.
And there is the CGT allowance band + other exemptions that help to zeroise any potential CGT in addition.______________________
Don't get mad...get even...Comment
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Originally posted by BrilloPad View PostI have a friend(!) who has a second home, however is not letting it out. To avoid CGT. Is there any truth in this?Comment
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Originally posted by WTFH View PostWhat if you lived in one and your wife lived in the other?Comment
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Originally posted by kaiser78 View PostYou can flip your second home with your first home to avoid paying CGT. This is how a large number of MPs were exposed in the expenses scandal a couple of years ago.
And there is the CGT allowance band + other exemptions that help to zeroise any potential CGT in addition.Comment
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Originally posted by FrontEnder View PostEven if it was possible, it seems pointless to lose out on rent to avoid paying tax.
You're only paying CGT on the rise in value of the property when you sell it. You're missing out on thousands from rent every year.
Maybe this would be viable if you bought a property that rocketed in price in a very short space of time.Comment
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Originally posted by kaiser78 View PostYou can flip your second home with your first home to avoid paying CGT. This is how a large number of MPs were exposed in the expenses scandal a couple of years ago.
And there is the CGT allowance band + other exemptions that help to zeroise any potential CGT in addition.
There is also a letting relief that can be claimed, if you lived in the property during the period of ownership but it is again restricted to the number of years of being main residence (plus the last 18 months).The relief is the lower of £40,000 or the private residence relief available and restricted to the amount of the gain realised.Comment
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