How will I be taxed on an investment property?
Q.
I currently live in my own house, which I have owned for 10
years. I am considering moving to the country and buying another
house to live in - I would then rent out my first house. If I later
decide to sell the first house how will the capital gains tax be
calculated?
A.
You will be liable for CGT on any increase in value from the
date you move out, so make sure you get a valuation done. Don't
forget you do not have to elect which house will be your residence
at this stage - your accountant will be able to give you more
information.
Each week financial advisor Noel Whittaker answers your
questions.
