Changing the direction of the topic a little.. if a serviceman/woman buys a house and rents it out because she is living in a Married Quarter, what are the rules concerning paying CGT when that house is sold?
If you own a house and don't live in it purely for service reasons, I assume that CGT is not accrued for that period, fair enough - in keeping with HMRC general guidance. But the moment that you
can live in it and choose not to, or decide that regardless of whatever happens in the future you
won't be living in it.. what happens to your CGT liability - does it start building up again and how is that point in time determined? How is HMRC able to put its corporate finger on a calender and say 'Aha Mrs X, you started accruing CGT..
then''. Can you live in a Quarter, own a home and sell it whilst still living in SFA
and avoid CGT from when you rented it out and until you sold it?
There is lots of general guidance and quite a bit of contradictory anecdotal evidence on the web but by way of getting a perspective, does anyone have a military angle on this, ideally, based on personal experience?
Much appreciated.
