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Gifted, lived in then let to buy…

Started by TS095, January 21, 2022, 07:58:59 PM

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My dad bought his residential home in the 80's, got married for the second time in the 90's and let it out after buying their marital home.

In 2009, my relationship broke down and I moved into my dads rental property Jan 2010 but being a single mum he wouldn't allow me to pay rent to him, in Nov 2010, my dad signed the property over to me, it was valued at 175,527.

In Oct 2014 i took out a let to buy with my partner, valued 252,315 (mort 174,077 - currently outstanding) and have let the property to date with the same tenant.

I am now selling the property to buy two more properties nearer to where I live to manage them easier, my partner has since passed away and I've received an offer on the property for 385,000.

Do I pay capital gains on the full value of the property as my father gifted it to me or, as I'm reinvesting the money, is capital gains put off until the property is sold and the money not reinvested?

Also, I've heard of the six year rule where you don't have to pay capital gains if the property is sold within 6 years, is this the case, if so, would it be better to sell / reinvest in a different property every six years?  What's the best way to benefit as far as CGT is concerned?

Thank you in anticipation of your advice.

Best regards