Capital Gains Tax and selling houses
If I decide to sell my home which is my only property, where my family and I currently live, and there is no mortgage interest in it from any lender. While I am waiting to find a buyer, I see my ideal home up for sale at an affordable price.
So I negotiate a good price on the new house, and to ensure I secure the property, I clear out my savings to buy it outright. At the point where my house makes the asking price, I sell it and put the total amount I am paid for my old house into my savings. Do I incur capital gains tax in this scenario, as I am effectively selling a property which is no longer my home??? |
gov website will tell you, but from memory you are allowed to capitally gain 9k a year on your main home without paying tax, i had to houses when mum passed sold the house after getting bungalow in probate, had house for 9 years made 50k never paid a penny :thumb: so almost the same as you bungalow became new home but house was main home for the 9 years before mums passing
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No, the sale of your principle primary residence is 100% free of CGT
Mortgage or no mortgage is irrelevant And I don't think a simple time lapse like that would change the material facts Obviously if you took 10 years to sell - when it would not be your PPR then that might change things As you can only claim 100 CGT relief on one property (your main one) at any given time) But best to get advice or simply ring HMRC |
I'm no expert but remember reading something about if you have lived there for a certain duration then CGT isnt paid, they may have changed it as it was a few years ago.
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the principle on your main "principle private residence" (PPR) and CGT is clear and unequivocal
100% CGT free - as long as it is your main residence in your example - there may be a short period where you move into you new PPR - and begin to receive 100% tax relief on CGT and when you still own your old house - that is now, no longer your PPR but I would think - all things being equal, and you sell within a reasonable period of time - at the market rate at which you vacated the property no CGT is due if you leave it a year, and in that time the property doubles in price - then it may be a different story as according to the "principle" of CGT you can only claim it on one property at a time so any gain on you new your house (in the above scenario) would be subject to CGT thats my understanding anyway |
No, the sale of your principle primary residence is 100% free of CGT
Thumbs up |
As your property was your main residence it will still have PPR applied for 18 months after you move out, it used to be 3 years.
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Originally Posted by Bluie
(Post 11736019)
As your property was your main residence it will still have PPR applied for 18 months after you move out, it used to be 3 years.
So in effect getting 100% CGT relief on both houses |
Originally Posted by hodgy0_2
(Post 11736034)
That's interesting, does it also apply if you buy another house - that becomes your PPR
So in effect getting 100% CGT relief on both houses |
Ok, interesting
Thanks |
I always thought it was as long as you had lived in it for 3yrs then there was no cgt, regardless of how many other houses you have.
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