The challenge that I have is that I rent out this property (it is my only residence) whilst I reside with my mother at her home (who is retired). Would I still face capital gains in this scenario? I have never owned any other properties during the same time. The "primary" residence has been my only residence. I do not however live in it. I'd like to know what would happen if I had to sell it.
TaxTimsays: 4 April 2017 at 9:48
Unfortunately as you do not live in the property you would be liable for CGT without the R2m exclusion. Did you ever live in the property?
JGsays: 4 April 2017 at 10:46
I have stayed there for some periods when it was not let. Also for the past year.
TaxTimsays: 4 April 2017 at 14:30
So in that case you would have to apportion the capital gain by the period over when you lived there and when you let it out. The primary residence would apply to the period you lived there and then not for the let period for which you would be subject to full CGT.
Get Tax Deadline Reminders, News and Tips
We'll tell you when you need to file, along with tax tips and updates.