Hi all, Looking at purchaisng a new PPOR in the next few weeks. My current PPOR would be put on the market for sale shortly after. My concern at the moment is that the property market may take a dive with this COVID-19 buisness before I have a chance to finalise a contract for the sale of my current property. Is there a hard and fast rule to dictate how long I can hold both properties for? For example; if I were to move into the new property, and leave my current PPOR vacant for 6 months before selling; upon selling the old property, would it be subject to CGT for the period it was vacant? Thanks
The CGT rule is that for 6months BOTH retain exemption at the same time. No longer. s118-140 : INCOME TAX ASSESSMENT ACT 1997 - SECT 118.140 Changing main residences Or you may adopt the absence rule to the former home for more than the 6 months BUT this then means the new home isnt exempt for the same days.
'6 months ending when your ownership interest in your existing main residence ends' Does ownership interest end upon signing a contract, or transfer of the title (ie. settlement)?
Depends how you dispose. If its CGT event A1 (disposal with a contract) then the contract date is relevant.