JJ
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Registered: 20th Apr 00
Location: Northern Ireland
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Need some advice...
Recently sold some property and I will have to pay capital gains on it... Thing is I want to buy another house and will be living in it with the wife so If I invest the money I made in this house from the property I sold will it lessen the CGT I will have to pay????
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Cosmo
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Registered: 29th Mar 01
Location: Im the real one!
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Have you sold a house you have never lived in or one which you've recently been in?
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Robbo
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Registered: 6th Aug 02
Location: London
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Ill Double check but u shud b able to claim rollover relief and therefore not hav to pay yet. Who previously lived there mate?
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JJ
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Registered: 20th Apr 00
Location: Northern Ireland
User status: Offline
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Its a building that had a shop in it, The people that had the shop retired and i sold the building to a developer.
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JJ
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Registered: 20th Apr 00
Location: Northern Ireland
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I also owned the building outright when i sold it.
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GT4Brody
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Registered: 26th Sep 01
Location: south
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Think there is some rule with houses, that you have to live in them for year to avoid capital gains, not sure about commercial premises...
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Robbo
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Registered: 6th Aug 02
Location: London
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Its a LOT more complicated than that 
I'll try and explain it as best I can but this is very simplistic
Basically, any house u own and live in is classed as ur principal private residwence (PPR)... provided u spend the majority of ur time over a 10 yr period (again, not a ssimpel as that) then u dont pay CGT on that property
Any property u own but dont live in is not classed as PPR and hecne will be liable to CGT BUT provided, as Justin wants to do, u re-invest a certain amount of the proceeds ina new asset then CGT can be 'rolled over' and hence liable at a future date. However, u r going to be using the proceeds for what will become ur PPR so therefore, the gain shouldnt really ever be payable.
It will be well worth your while speakign to an tax advisor tho mate as this is a very sketchy and complex area, but thats the basics 
[Edited on 05-08-2007 by Robbo]
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Cosmo
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Registered: 29th Mar 01
Location: Im the real one!
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Im not sure if its going to count when buying a PPR with the money, as otherwise people would just invest in property (and any other ventures for that matter) then buy one single (possibly expensive) PPR to live in for a while with any proceeds when you sell up and never pay any CGT.
Would save people millions if it was possible though!!
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JJ
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Registered: 20th Apr 00
Location: Northern Ireland
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Cheers Robbo, Booked an appointment with Mr Tax advisor.
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Robbo
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Registered: 6th Aug 02
Location: London
User status: Offline
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quote:
Originally posted by Cosmo
Im not sure if its going to count when buying a PPR with the money, as otherwise people would just invest in property (and any other ventures for that matter) then buy one single (possibly expensive) PPR to live in for a while with any proceeds when you sell up and never pay any CGT.
Would save people millions if it was possible though!!
Your quite right mate, its a minefield hence the suggestion that a tax adviser be the best bet 9y)
Np Jus mate
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