Capital gains tax on property

[tim123]

I can't remember exactly how it works but I think the tax advantage with property is that capital gains tax doesn't apply on gains from borrowed money.

So unless you've paid for the property yourself instead of using OPM (other people's money - ie. a mortgage) you shouldn't be liable for capital gains tax.

This is complete rubbish.

Get some free advice from these people:

http://www.axispropertyinvestment.com/free.advice.html

I can really vouch for that company - their head guy spoke at an investing seminar I went to recently and he's the real deal.

HTH

Hum, most of these seminars are fronts for some type of con.

HTH

tim

[Zorba]

If the person who sold you the flat at a substantial discount is a friend or relative, you might want to inform them that they may have to pay CGT based on the market value of the flat and not the actual sale price. It's a bugger, that one.

[meridian]

I would like some advice on situation regarding a couple of properties I own and the tax implications of selling one. I am raising it here as I think it may not be that straight forward so would welcome a comment or two from some of the accountants on this board!

I have been a tenant in a flat since Sept 2006, last week I bought the flat at a large discount to the open market value. Meanwhile I have just purchased a small house where I would like to move into asap.

My question is if I moved out of the flat into the house now – having only owned the flat for a month or so (but lived in the flat for over six months), will I have the tax man after me for the tax on the capitals gain?

If yes, if I rented the house for say six months and then moved in and sold the flat would that make the matter more clear cut – no tax to be paid on the flat gain?

Thanks

The gain arises when you sell it, not when you move out. Once you sell, you will be assessed on the gain less an allowance for any period of time you were living in it as principal private residence.

Google for PPR and capital gains, there's a lot of info on the web that would need to be tailored to your particular circumstances.

[Jog On]

I can't remember exactly how it works but I think the tax advantage with property is that capital gains tax doesn't apply on gains from borrowed money.

So unless you've paid for the property yourself instead of using OPM (other people's money - ie. a mortgage) you shouldn't be liable for capital gains tax.

Get some free advice from these people:

http://www.axispropertyinvestment.com/free.advice.html

I can really vouch for that company - their head guy spoke at an investing seminar I went to recently and he's the real deal.

HTH

[castoff101]

I would like some advice on situation regarding a couple of properties I own and the tax implications of selling one. I am raising it here as I think it may not be that straight forward so would welcome a comment or two from some of the accountants on this board!

I have been a tenant in a flat since Sept 2006, last week I bought the flat at a large discount to the open market value. Meanwhile I have just purchased a small house where I would like to move into asap.

My question is if I moved out of the flat into the house now – having only owned the flat for a month or so (but lived in the flat for over six months), will I have the tax man after me for the tax on the capitals gain?

If yes, if I rented the house for say six months and then moved in and sold the flat would that make the matter more clear cut – no tax to be paid on the flat gain?

Thanks