Our holiday house became our permanent residence 3 years ago. Do we pay capital gains when we sell it? We have owned it for 5 years. Are capital gains applied at 2/5 of the total gain?
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Our holiday house became our permanent residence 3 years ago. Do we pay capital gains when we sell it?
Yes - if there is a capital gain when it is sold.
We have owned it for 5 years. Are capital gains applied at 2/5 of the total gain?
No - main residence exemption will be pro-rata for the number of years that it is your main residence. If you never sell it, then there will never be a capital gain for you - but CGT liabilty will be be met by whoever inherits.
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Oh, and it was never rented out. Used solely by ourselves.
Our holiday house became our permanent residence 3 years ago. Do we pay capital gains when we sell it?
Yes - if there is a capital gain when it is sold.
We have owned it for 5 years. Are capital gains applied at 2/5 of the total gain?
No - main residence exemption will be pro-rata for the number of years that it is your main residence. If you never sell it, then there will never be a capital gain for you - but CGT liabilty will be be met by whoever inherits.
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