Will I have to pay CGT?
Q.
If I buy a property, rent it out for one year whilst renting
somewhere else, then move in and live in the house for 10 years,
will I have to pay CGT - proportionally for the one year period -
when I sell the property?
A.
Yes you will - but a better option may be to move into the house
for a few months at the start and then move out and rent it. You
can be absent for up to six years without the house losing its CGT
free status, so it's only a matter of moving back during that
period and the entire property would be CGT free. Of course if you
do the sums on 11 years of ownership, with just one year as a
rental, you may find that the CGT is minimal in any event.
Each week financial advisor Noel Whittaker answers your
questions.
