Hi
I bought a house and completely renovated it then moved in. I am building another house in the back garden which I would like to sell. I am aware of the cgt liability if I sell the second house on its own but what would hapen if I sold both houses at the same time.
I guess one would be your primary residence, and one could be liable to CGT.
If you sold both at the same time, one would be exempt from CGT, and the other could be liable for CGT based upon the amount of time you have owned the asset.
However, IF you were unable to sell one without the selling the other (i.e. they come as a package) you may be able to treat them as a single property, or get some sort of relief on them. Probably need to speak to an accountant about this one.
Neil.
bobtracey wrote:
In article , snipped-for-privacy@invidion.co.uk writes
This can get really thorny.
Might it be possible to live in the new property and sell the old one?
There is a real danger that your motivation is profit and so the whole transaction might be trading income rather than capital gain. You need to speak to an accountant.
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