Things that ENHANCE the CGT main residence exemption

• Adjacent land (doesnt even need to be connected land) s118.120
• New home contructed on land s118.125(b)
• Changing main residence s118.140
• Replacement of a destroyed or compulsory acquired dwelling s118.147
• Acquisition of land from a former owner under a marital property settlement (rollover) s118.178
• Acquisition of land from a trustee or company under a marital property settlement (rollover) s118.180
• .Home that had previously been 100% exempt since being acquired is then first used to prduce income. Costbase reset rule. s118.192
• Dwelling aquired from a decaesed estate. Costbase modification rules. 1 of 2 rules. s118.195
• Partial exemption for a dwelling acquired froma deceased estate 2 of 2 rules. s118.200
• Surviving joint tennacy rule s118.197
• Cost base modification rule for a trustee of a deceased estate under a will that sells. s118.210
• Disability trusts s118.215 to s118.230
• Comulsory Acquisitions s118.240 to s118.265

 

what is 'changing main residence' ?

 

would be moving from a property that was your main residence into another property.

so questions that might be asked are

1. how does the 6 month overlap rule impact things ?

2. should i use the main residence absence rules ? what will be the tax affect on any other property ?

3. does the 4 year construction rule impact on anything if i change residence and the new residence is a new build

just a few off the top of my head

 

Yes those all fall within some of those laws. ALL these rules indicate some of the complexity and why personal advice is a benefit.
The issues you mention are just a fraction of the issues regularly considered and given "advice". The rules themselves are justa part of the tale.

And then there are tax rulings and other laws on top. eg Can a London property be a main residence for a arriving tax resident ? And can they use the absence rule ? And what is the costbase for that property ?

 

In its ordniary meaning its when you have occupied a main residence and then cease that and commence to reside in another that is owned. Spouse rule, dependant rule, absence rule, costbase reset, residency and many other issues could all affect the issues and the CHOICES available to the taxpayer. None of these rules in itself produce a CGT event but future CGT events may be impacted by choices, records and knowledge.

eg 3rd element costs could be applicable to some property use, sometimes. Aguably the best tax advice is that the taxpayer then knows of the choices and what records to keep so all options remain available so on the first CGT event they can make a sound choice to minimise tax or even avoid it altogether.