Hi all, hope I can get some help with regard to my confusion about capital gain. Say I have a property A which was purchased back in 2010 and been living on until around 2018 where we rent it out until now. We purchased another property B around end of 2017 and been living on it since. My question is, if I decide to rent another property and live in it. Then I rent out property B. If I sell property A afterward will I be exempted from CGT ?
Either could be exempt. Assuming A was perviously 100% exempt until you departed. A would have a new costbase at the market value when first rented. It could be claimed using the absence rule (up to 6 years) for the period after actual departure. If you do this then... 1. No exmption for same dates for B...and 2. Pro-rata then applies forevermore to B....With the first XXX days (used as exempt in A) always taxable but this will diminish as a % over time. One benefit of this method is you can forever add non-deductible ownership costs (thrid element costs) while you live in B so the costbase will increase forever ...so a high costbase then subject to a XX days divided by total period of ownership as taxable You need to do calcs to compare merits. Many fear the impact on B when it may even be trivial over 20 years and with 3 rd element costs.
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