Reinvesting proceeds of house sale in another property
Mar 24th 2015, 9:40 pm
#1
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Reinvesting proceeds of house sale in another property
If total proceeds from a house sale in UK are invested in a house in Spain , I understand there is no cgt to pay, but if only part of the proceeds are invested cgt is apparently due on the remainder.
If there is no investment in another property then cgt is due on the profit made, so in the case of partial investment is the cgt due in proportion to the profit made or on the remainder of the actual proceeds, if the latter, it could be more expensive than paying cgt on the profit if one had not reinvested.
If there is no investment in another property then cgt is due on the profit made, so in the case of partial investment is the cgt due in proportion to the profit made or on the remainder of the actual proceeds, if the latter, it could be more expensive than paying cgt on the profit if one had not reinvested.
Mar 24th 2015, 10:32 pm
#2
Joined: Jun 2006
Location: Granada Costa
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Re: Reinvesting proceeds of house sale in another property
CGT is due only on the gain.
If you invest half the proceeds of the sale then you pay tax on half the gain.
Remember that these concessions only apply when you sell your habitual residence and invest in another habitual residence.
You must have owned and lived in the previous home for three years or more for it to be classed as your habitual residence.
If you invest half the proceeds of the sale then you pay tax on half the gain.
Remember that these concessions only apply when you sell your habitual residence and invest in another habitual residence.
You must have owned and lived in the previous home for three years or more for it to be classed as your habitual residence.
Mar 24th 2015, 10:37 pm
#3
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Re: Reinvesting proceeds of house sale in another property
Thankyou
