austen
Apprentice
Joined: 05 Jan 2007
Posts: 8
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 Posted: 01/08/08 - 10:14 Post subject: |
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| I have recently started inherited a property. I would like to sell it, as I would benefit from getting some extra money. However, I would like to know how CGT works in my case. I am simply not sure if it is profitable selling a house because it. If anyone could tell me, that would be great. Thanks in advance. |
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eugenius
Apprentice
Joined: 20 Jun 2004
Posts: 8
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| Posted: 02/06/08 - 22:50 Post subject: |
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When it comes to CGT, or capital gains tax, it is usually applied to the income you get when selling your home. Moreover, it only applies for second property, not the one you live in. If this is your primary residence and you have never been using it as anything else, prior to the 36 months before selling, it is still counted as such. When you inherit a property, it becomes definitely yours, and is not counted as primary residence. If you start living in it, and only in it, for several years, then it might start be counted as PPR, but if that is not the case, you will have to pay CGT. For some more info, go to http://www.rediff.com/getahead/2005/aug/
16tax.htm. |
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