CGT calculation on sale of rental property

ethan · #1 22-08-2006, 08:35 AM

Hi,

I own one property which I purchased in 1993 and lived in it till 1999, I then rented out the property till the present day, this is the only property I own and now I?ve been living in rented accommodation, if I sell the property will I have to pay CGT and if so how will it be worked out.
Thanks
Ethan

ryan · #2 22-08-2006, 08:37 AM

Yes, you will pay some CGT. The computation is VERY complicated and has to take into account

the period for which it was your main residence plus the last three years of ownership. If you have owned it for 12 years and lived in it for the first six then 9/12 of the gain is exempt.

The original cost is increased by indexation from 1993 to 1998.

There is additional relief where you rent out a property that you have lived in

and then you have non-business taper from 1998 until now.
Thanks,
Ryan