Q.

My wife and I bought a new house in the country in 2005 with the idea of moving there from the city when we retired. We have not rented the house and use it most weekends as our "getaway" to get the feel of country living. After two years we have decided that country living is not for us and have decided to continue to live in our city house and sell the country house. We did not intend buying the house as an investment and have made no money by renting it out. Given the circumstances, what percentage of CGT will we have to pay?

This is something to discuss with your accountant but on the facts provided you will be able to add all costs of ownership, including rates, land tax, interest, and maintenance to the base cost when working out capital gains tax. You will also be entitled to the 15% discount as you have had the property for over 12 months.