Property Tax when selling your main home

Published on June 3, 2011 by Crawfords Accounting

When selling your home it is important that you understand what is required of you when it comes to paying property tax. Provided that you meet certain criteria, you will not be liable to pay property tax if you are selling your main home. However, if the property you are selling is not your main home, it is highly probable that you will be obligated to pay Capital Gains Tax.

When selling your main home, property tax will not be an issue if certain conditions are met. The property must have been bought by you in order for it to be your home and not with the view to make a profit on the sale of it. The property needs to have been your sole home prior to the last three years. The property will have been home to you, your family and no more than one lodger. The property and surrounding grounds must not exceed 5,000 square metres. For those who are married or in a civil partnership, this property should be the only one owned by either of you. Property tax relief may still be granted if not all these terms are met.

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