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We plan on renting for 6 years and moving in for a long time............

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| 25 Aug 2012, 07:09 AM Agree 0
I can't seem to find any answers

We plan on buying a house to rent for 6 years and then move in for a lot of years.

Is there a 6 year policy, to remove the house from Capital gains tax, as I don't want the house to be subject in 30 years or so?

Can we buy buy not bother registering the house for tax?


  • Eos Property | 25 Aug 2012, 11:34 PM Agree 0
    Hi Tom,

    The '6 year rule' only applies if you move out of your own home, rent it and then either sell it or move back in before 6 years have elapsed.

    In your situation - initially renting the property and then moving into it means you be liable for CGT for the period it was rented. This liability will be determined by the difference between what you paid for it and the value of the property when you moved in. This will value (at move in time) will be established by a valuer.

    As I understand it the CGT bill will be paid when you eventually sell the property - this would be worth checking with an accountant.

    Obviously if, in your situation, you were able to initially move in, then rent the property, then move back in you would have the benefit of the 6 year rule.

    I would not recommend trying to avoid tax - this puts you offside of the tax system and liable to incur penalties. Not worth it in my opinion.

    Please note I am not an accountant - so double check with one first.
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