Will we be eligible to avoid CGT if we live in our from two years
after purchase?
Q.
We have just built a new property and unfortunately have to move
for work reasons. We have never lived in the property but expect to
move in after two years of renting it. Will we be eligible to claim
the property as our main residence and avoid CGT?
A.
If you rent the property and then move out of it you will be
liable for CGT on a pro rata basis according to the time it was
rented out. But if you move into it for a while before you rent it
out you will be able to be absent from it for up to six years
without losing the CGT exemption provided you do not claim any
other property as your principal residence in that time.
Each week financial advisor Noel Whittaker answers your
questions.
