Using your CGT allowance on sale of a new build
Question I am planning to resell an off-plan property I have just purchased but will be ready next year. Can my wife and I use our CGT allowance when it is sold?
As in the previous answer given by Ian, the answer to your question depends on what your original intention was.
If you originally intended to sell the property straight after completion, then it may be classed as a 'dealing trade', and your profits at the point of sale will be subject to income tax. Therefore no CGT allowances will be available.
However, if your intention was to let the property, but given the dramatic increase you have now decided to sell, then you can both claim your annual CGT allowances, which currently stand at £8,200 for the 2004-2005 tax year.
Remember - The property must be in joint names before both you and your wife can claim the annual CGT allowance.
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