slagmagnet69

Can anyone explain CGT to me as I am not to sure about the exact ruling on this matter? I am thinking about renting out my home while I go travelling overseas but I am thinking maybe I would be better off selling my house rather than the hassle of renting the property and also giving the taxman a cut of my cash.

1, If I use my house as my main home and then decide to sell my property am I required to pay CGT or am I only required to pay CGT if I have rented it out and made money that would then obviously be taxable?

2, If I decide to rent my house out and I then come back to the property to use as my home would I still be obliged to pay CGT when I eventually sell the property?

Any info/advice much appreciated. Cheers.

Dan J

You don't pay any CGT on what is your main residence. You'd only pay it if you bought subsequent investment properties and sold them for a gain over the limit. So as long as the home remained as your main residence, which it would, there'll be no CGT to pay.

fast bloke

yes yes no and yes

Dan J

Four answers to two questions! This site goes the extra mile doesn't it...!!

slagmagnet69

So I could rent the property out for say 5 years whilst living overseas and then sell it upon my return without being bent over by the IR?

Phil

You would have to declare the rental income to the revenue but you would be able to claim allowable expenses against that