shaun
Apprentice
Joined: 14 Jun 2007
Posts: 4
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 Posted: 12/26/07 - 06:07 Post subject: |
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| I have recently started thinking about selling my property. I would benefit from getting some extra money. However, I would like to know how CGT works in my case, as I would first sell it and then start looking for another house. I am simply not sure if it is profitable selling because of it, as I am not sure whether it is still counted as PPR. If anyone could tell me, that would be great. Thanks in advance. |
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lindon
Apprentice
Joined: 15 Jan 2006
Posts: 7
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| Posted: 01/25/08 - 01:05 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. Your situation is different, and your dilemma natural. You are selling your house, so you will not be living anymore in it, and you still do not have another home to be your PPR. Rest assured that there is a transition period during which you should buy another home, with the previous one still counting as your primary residence, thus making you CGT exempted. That period lasts for some two months, so before selling your current house, be sure to have narrowed down your choices of a next place to live. |
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