Is it possible to roll my capital gains tax over to a new home?

0

Is it possible to carry over my capital gains tax to a new home?

Ask Gareth: The tax increase may not be as significant as anticipated.

I currently reside in a home that I rebuilt after renting it out for 17 years.

I’ve owned the house for 23 years and have spent the last six years living there.

Could you please tell me if I can transfer my capital gains tax liability to my next home? I’m worried that if I sell my current home and have to pay the tax on the sale, I’ll find it difficult to find another home.

Name and address have been provided.

I understand your concerns, but the tax increase may not be as significant as you fear.

I’ll explain why, but I believe you would benefit from the assistance of a professional tax adviser.

When selling a home, it’s important to understand the basics of calculating your capital gains tax liability.

The first is that you don’t pay capital gains tax on the entire sale price of the property; only the difference between the purchase price and the sale price, after tax reliefs, deductions, and allowances, is subject to capital gains tax.

If you only own one property and live in it your entire life, you will not have to pay any taxes on your profits.

This is due to a provision known as “private residence relief.”

Even the time you lived in the property you previously rented out is covered by this tax break.

I find it helpful to think of your property’s ownership period in months.

You’ve had the house for 276 months, or 23 years.

You’ve spent 72 months in the house.

You also get an extra nine months of private residence relief, giving you a total of 81 months of ownership that aren’t subject to capital gains tax.

As a result, capital gains tax is calculated on 71% of your profits.

That’s the first step toward lowering your monthly bill.

The second step in calculating your taxable profit is where you can reduce your liability by deducting certain expenses from your profit.

These, for example.

UK news summary from Infosurhoy.

Is it possible to roll over my capital gains tax to a new home?

charset=”utf-8″ wpcc-script async src=”https://platform.twitter.com/widgets.js” wpcc-script async src=”https://platform.twitter.com/widgets.js” wpcc-script async src=”https

wpcc-script async src=”//www.instagram.com/embed.js”]

Can I transfer my capital gains tax to a future home?

Gareth Shaw is head of money at Which?
To have your question featured on this page, email [email protected]

Can I transfer my capital gains tax to a future home?

Gareth Shaw is head of money at Which?
To have your question featured on this page, email [email protected]

Comments are closed.