Although it’s a bit easier now than it used to be, what complicates matters is the number of laws that dictate what you can and can’t do. And change is frequent – it seems as though every budget brings a change to tax laws. That can add even more complication for you.
You may not have come across them before, but there are a number of property tax laws that apply to you and any investments you make into property. They tend to affect income from rental properties, plus any profits you make from selling houses you own.
Use this simple guide to wade through property tax and understand how it could affect you.
First off, the good news. If you’re selling a property that is your main home, you won’t pay tax on it, as long as you satisfy certain conditions.
There’s nothing in the conditions to scare you. You have to have bought the property and spent money on it primarily for use as your home rather than with a view to making a profit. The house also needs to have been your only home during the time you owned it, and you have used it as a place for your family and no more than one lodger to live.