How can we avoid CGT or reduce it?
Q.
I'm really confused about capital gains tax. We have rented our
home for short term accommodation for the past two years but need
to sell. How can we avoid CGT or reduce it? Should we move back
into the home?
A.
If you moved out of your own home less than six years ago, and
have claimed no other property as your residence in that time you
are allowed to retain your CGT exemption. Therefore, on the face of
it you should be CGT exempt, but make sure you confirm this with
your Accountant before you sign any sales contracts.
Each week financial advisor Noel Whittaker answers your
questions.
