Does status of property affect CGT?

Practical Issues
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raybarrow
Lemon Slice
Posts: 335
Joined: November 6th, 2016, 8:14 am

Does status of property affect CGT?

Post by raybarrow »

Hi Folks,
Sorry if this is a bit confused!
We have accepted an offer on the inherited house we (three of us) are selling. Cash buyer wants a quick sale, which suits us. If we can get it sorted before the drop in the CGT allowance, even better. I know it could all go wrong.
The house is currently rented out through an agent and my brother has raised a question regarding property status and CGT. If the house is no longer rental at the time of sale does this affect the CGT? My non-legal brain says it's no longer a rental when we tell the agent. Would a tenant, on notice, affect that date?
I'm not sure where this has come from but we are both swimming through the CGT treacle. It maybe be that 'rental' or 'not rental' makes no difference at all. We have lived in our own houses from before we inherited.

As an aside,I noted this from a reply by Lootman on a recent CGT question.
Acquisition date is not required to be reported any more. The form asks for it but you can just leave it blank.

As you note, there is no need for it any more as the time period of holding is no longer a factor.
That is good news, I can't believe they've made it easier.
Ray.

Alaric
Lemon Half
Posts: 5804
Joined: November 5th, 2016, 9:05 am

Re: Does status of property affect CGT?

Post by Alaric »

raybarrow wrote: It maybe be that 'rental' or 'not rental' makes no difference at all. We have lived in our own houses from before we inherited.
.
It might plausibly make a difference to the market value of the property when you inherited it. But a sitting tenant is only likely to reduce the value for open market resale, so it would be bad news from a CGT viewpoint although good news from an IHT viewoint, if relevant.

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