Comments on: What is Capital Gains Tax? http://link4business.info/2008/06/what-is-capital-gains-tax/ Starting, Growing & Running Your Business Sun, 13 May 2012 14:24:08 +0000 hourly 1 http://wordpress.org/?v=3.3.2 By: James Green http://link4business.info/2008/06/what-is-capital-gains-tax/comment-page-1/#comment-49 James Green Wed, 13 Aug 2008 12:11:28 +0000 http://link4business.info/?p=13#comment-49 Hi George, Currently you can rent out a property that was your principal or main home for three years without being caught in the CGT net. The rules consider that in this situation the last three years of ownership count as if the house was still your home. If you sell after 3 years - say 4 or 5 - then you will get caught by CGT but only on any gain made on the value of the house at the end of the three year period. There are some other more complex things you can do if you are going to be hit by CGT after the 3 years are up but they are probably not relevant at the moment. Hi George,

Currently you can rent out a property that was your principal or main home for three years without being caught in the CGT net. The rules consider that in this situation the last three years of ownership count as if the house was still your home. If you sell after 3 years – say 4 or 5 – then you will get caught by CGT but only on any gain made on the value of the house at the end of the three year period.

There are some other more complex things you can do if you are going to be hit by CGT after the 3 years are up but they are probably not relevant at the moment.

]]> By: GeorgeKF http://link4business.info/2008/06/what-is-capital-gains-tax/comment-page-1/#comment-47 GeorgeKF Wed, 13 Aug 2008 09:01:45 +0000 http://link4business.info/?p=13#comment-47 Thanks for this. Most interesting. One question though. I relocated for my work last year and after six months I bought a new house closer to where I now work. The old house has been on the market for some time and in the present state of the market I have decided to rent it out. If I sell it in two or three years will I have to pay CGT on this house as it isn't my main place of residence? Thanks for this. Most interesting. One question though. I relocated for my work last year and after six months I bought a new house closer to where I now work. The old house has been on the market for some time and in the present state of the market I have decided to rent it out. If I sell it in two or three years will I have to pay CGT on this house as it isn’t my main place of residence?

]]>