OVERVIEW
Overview
The single-house exemption is determined by household, not by individual. Housing held by a spouse and by lineal ascendants or descendants who share a livelihood is counted together, so a person who holds only one property in their own name may still be treated as holding several at household level. Holding period requirements, residence period requirements and whether the property was in a regulated area at the time of acquisition then combine, with the result that identical apartments sold at identical prices can carry entirely different tax.
At the point the sale is being considered, VALUE Tax & Accounting sets out the housing held by every member of the household together with each property's acquisition and residence record, and calculates when the exemption first becomes available. Relief that depends on a time limit, such as temporary two-house status, inherited housing, a household merged to support parents or a household merged on marriage, can turn on a matter of days, so the balance payment date sometimes needs to be adjusted. Where the exemption cannot be secured, we work instead to reflect the special long-term holding deduction and necessary expenses in full.
KEY ISSUES
Key tax issues in residential property sales
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01
Determining the scope of the household
A spouse, and lineal ascendants, descendants and siblings who share a livelihood, form a single household. Changing a registered address does not by itself separate a household; whether livelihoods are genuinely separate is judged on income and actual residence.
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02
Holding and residence requirements
The holding requirement must be satisfied, and where the property was in a regulated area at the time of acquisition the residence requirement applies as well. For the property remaining after other housing has been disposed of, the holding period may start from a different date and is confirmed separately.
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03
Temporary two-house status and time limits
Where a new home is bought before the former home is sold, both the acquisition timing of the new property and the disposal deadline for the former property must be observed. Missing the deadline by a single day removes the relief.
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04
Inheritance, parental-support and marriage relief
Separate relief exists for inherited housing, for a household merged in order to support parents, and for a household that comes to hold two properties on marriage. Which property is sold first determines whether the relief applies.
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05
High-value housing apportionment and the long-term holding deduction
Where the actual transaction price exceeds the statutory threshold, only the excess is taxed. For a single household home the special long-term holding deduction reflects the holding period and the residence period separately, so evidence of actual residence directly affects the tax.
HOW WE HELP
How VALUE Tax & Accounting responds
Mapping the household and its housing
We set out the housing, occupancy rights and pre-sale rights held by every member of the household, together with acquisition dates and moving-in and moving-out records, and fix the current house count.
Calculating when the exemption applies
We calculate to the day when the holding and residence requirements are met and when each relief period expires, and propose a balance payment date accordingly.
Filing and retaining evidence
We file with acquisition value, necessary expenses and evidence of actual residence in place, and organise the supporting material in case it is later reviewed.
FAQ
Residential property sales FAQ
Q Does separating the household immediately create a single-house position? expand_more
Changing a registered address does not by itself separate a household. Whether the separated member has the income or meets the age requirement to maintain an independent livelihood is considered as well. Where form and substance differ, the household is treated as one and the exemption can be denied.
Q Are pre-sale rights counted in the house count? expand_more
Pre-sale rights acquired after a specified date are counted when the exemption and the heavier rate for other housing are assessed. Treatment depends on when the right was acquired, so the contract date and the balance payment date must be confirmed first.
Q What happens if the former home does not sell under temporary two-house status? expand_more
If the disposal deadline passes the relief no longer applies and the exemption is lost. As the deadline approaches it is generally better to weigh alternatives such as adjusting the price or letting the property before selling, with the tax consequences set out alongside.
Q If I have inherited a property, is the home I live in still exempt? expand_more
Inherited housing is excluded from the house count where the requirements are met, and the exemption for the existing home is preserved. The outcome differs, however, depending on whether several properties were already held when the inheritance began and on whether the inherited property is sold first.
Q How is actual residence evidenced? expand_more
A resident registration certificate is the starting point but is not always sufficient. Maintenance and utility payment records, children's school records and the locations of card transactions strengthen the position considerably if they are kept.