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Are teachers exempt from capital gains tax on their property if they rent it out whilst working as housestaff? |
My wife and I purchased a house in 2003 whilst working as a housemaster (and wife) in a boarding school. It has been necessary to live in school accomodation in order to discharge our duties, and therefore we rented out our house. It has gained about 拢50,000 in value over the past few years,and although we have never lived in the house we would now like to sell it. I believe that there are special dispensations relating to capital gains tax if you have to live in accomodation in order to do your job(i.e. a vicar for example) and therefore are unable to live in your own house. Under these circumstances the property is treated as your principle residence. Is this true? and, If you have been living in job related accommodation, then the sale of the property would not attract CGT, even if you never lived in it. You simply would not declare the sale. Sorry, I am not experienced in the tax laws of the United Kingdom. The best answer this old US citizen can give is to contact a tax professional, it appears your tax return will have other issues also. I believe you will probably have to pay CGT on the profit,but if you go back and live in the house for 12 months that should solve your problem.Have no information about dispensation,sorry. Fengirl has it spot on - you are safe from CGT. |
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