We are often asked how people can become eligible to sell a property at a profit without crystallising a tax bill. Many people will have heard that if you live in the property for a period you can claim a tax exemption. Unfortunately, its not quite that simple.
The Taxman looks at the following areas as well as the length of time you live in a property:
- did the owner actually live in the property themselves?
- is the property habitable i.e. is it in a good state of repair?
- is the individual registered to vote at the house?
- does the person pay the council tax at the property?
- what address does the tax office have for the person?
- do you work within commuting distance of the property?
- are your more valuable possessions/furniture in the house?
- where do your family spend most of their time?
As a final note we would add that there is no fixed time period whereby you qualify for the tax exemptions but the longer you live there the better.
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dont miss out on letting relief if you have lived in the property at some time, but you may need expert help with this
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