2nd property rules

kinny_boy

Hello Housey Experts!

I'm currently a home owner, looking to buy a new place. Like many others I really do not want to be involved in a chain. With some financial jiggery pokery and short term loans I will be able to afford to buy a new house as a cash buyer, I would then put my house immediately on the market.

So I would only be living at one place, other would be empty whilst I was trying to sell.

(Forgot to say current home is in my name, new one will be in joint names (+wife), if that makes any difference)

Question for you experts is this:

Would the tax man consider my first house as a 'second home' and tax me accordingly when i sell. (I know normally you wouldn't get taxed on your primary residence when you sell, but it could take months to sell my first house and this is where I think the waters get muddy.) Is there a 'time limit' or any other rules I should know about when trying to purchase a house in this way??

k

Doozergirl

Your current home is your main residence. If you buy a new property and move in there, that will become your main residence. If you put your old house on the market and sell within three years of moving out, you do not have to pay Capital Gains Tax. After that three years it gets more complicated.

It's not the cleverest or cheapest way to buy a new house. Please be certain that the price you expect for your current home is realistic.

frugal_dougal_3

Doozergirl wrote:

It's not the cleverest or cheapest way to buy a new house. Please be certain that the price you expect for your current home is realistic.

I agree. It might be safer and cheaper to go into short term rented accommodation, even though this would involve moving twice.