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Ok i moved into this house in Jan and come to realise that while its a nice house its too far away from work, hate the commute and reliance on trains, and its too far away from the other half so i will be putting it back on the market once i've done it up to a reasonable standard. I was just wondering about paying tax on it if HMRC thought i was just doing the buying/selling thing. Just looking on their website they say this...
You don’t pay Capital Gains Tax when you sell (or ‘dispose of’) your home if all of the following apply:
Now that's all fine and i meet all the criteria, except the very wooly last one. How do you prove one way or the other that you didn't buy it to make a gain. What if i buy the next house and not really happy with that one either after a reasonably short period of time. Its still my home, im living in it, but its bound to go up in value once its been tidied up. I'm really not interested in buying houses, doing them up and selling them on. This one has proved to me i really don't see a career in that! far too much effort, although i can see there is good money to be made. But would i likely get hit for a tax bill based on the last point there.
You don’t pay Capital Gains Tax when you sell (or ‘dispose of’) your home if all of the following apply:
- you have one home and you’ve lived in it as your main home for all the time you’ve owned it
- you haven’t let part of it out - this doesn’t include having a single lodger
- you haven’t used part of it for business only
- the grounds, including all buildings, are less than 5,000 square metres (just over an acre) in total
- you didn’t buy it just to make a gain
Now that's all fine and i meet all the criteria, except the very wooly last one. How do you prove one way or the other that you didn't buy it to make a gain. What if i buy the next house and not really happy with that one either after a reasonably short period of time. Its still my home, im living in it, but its bound to go up in value once its been tidied up. I'm really not interested in buying houses, doing them up and selling them on. This one has proved to me i really don't see a career in that! far too much effort, although i can see there is good money to be made. But would i likely get hit for a tax bill based on the last point there.