main residence

Main residence CGT exemption when there is no “residence”

There is a concession in the CGT rules that can allow a taxpayer to treat a property as their “main residence” even though it does not yet have a habitable dwelling. It is a widely recognised fact that an exemption to capital gains tax (CGT) applies to a taxpayer’s principal or main residential property. What

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Expanding the empire (and retaining the CGT main residence exemption)

A question that surfaces now and then from clients in regard to capital gains is whether the main residence exemption extends to additional land acquired after the time of acquisition of the residence. The short answer is yes — provided that certain requirements are met (which in the main pertain to subsections 118-120 and 118-165

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Land owned before CGT, but can a recent house built on it be CGT-free?

Naturally, a taxpayer will assume that when they build a house, that building will not qualify for CGT exemption until it becomes that taxpayer’s “main residence”. There is however a section of the regulations that allows that taxpayer to extend the period of the main residence exemption so that this is initiated during the period

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