Capital Gains on Self Build Houses

8 October 2018
by Archive User

I have owned the plot of my house for more than two years, but the house construction has just been completed.

Is CGT payable if I decide to sell within the next two years?

One Answer

  1. Tim Doherty says:

    My own understanding is that time limits as implied in your question are not important here.

    What is important is whether or not this is your principal private residence (PPR) or an investment project/property.

    If it is your PPR then you can build the house and, subject to your circumstances changing, decide to sell it and move on.

    As long as this is not deemed to be a regular pattern, then usually there are no taxes on any gains.

    However, an investment project will attract either income tax or capital gains tax as the dwelling was never intended to be your PPR.

    If you are in any doubt here you should talk to your Accountant.

    Tim Doherty, Build It expert

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