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Selling a house and capital gains tax


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Pretend to live there for 6 months, I mean live in it for six months, then it's classed as your main home and you don't pay. (Or something like that!)

Q: do you personally hold indemnity insurance sufficient to compensate anyone who follows your ill-advised advice?

 

No, thought not.

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Be aware that "pretending" to live there, or altering paperwork to make it look like a main residence when it isn't would be classed as "tax evasion" - if HMRC find out they will haul your friend over the coals.

 

The current tax free amount of capital gains is 10,600

 

EDIT: would echo the accountant calls - there are a number of items that can be ffset against CGT (duty, Building work, etc)

Edited by Dave h-j
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Surely as a solicitor you should not make such assumptions.

 

Sorry Neeeeek, your advice is frankly, bad. The person is liable for CGT on the gain in the property value over the nil rate band of £10,600, certain deductions to offset the gain can be made but a list of these deductions can be found by speaking to an accountant. If the person has seen a tripling of property price since purchase then should have more than enough funds to pay the tax...

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