Capital gains tax

sparky666

Hi

We wish to buy a house that has come on to the market, we can buy the house with cash we already have, however we need and want to sell our present home to replace our savings, I have been in touch with our solicitor and I am informed that as long as we sell our main residence within 12 months that we can elect it as tax exempt. However if not sold after 12 month we have to apply for tax exempt but may not get it, can any one give me any other advice, we don't want to loose the house we have seen but don't want to be paying out thousands in tax. Just not sure our present house will sell in 12 months. Would it be worth contacting tax people.? before hand..

Thanks in advance.

dunstonh

Tell your solicitor to read up principle primary residence relief as the information given to you was wrong. It's 3 years with some provisos.

http://www.direct.gov.uk/en/MoneyTaxAndBenefits/Taxes/TaxOnPropertyAndRentalIncome/DG_4020890

sparky666

Many thanks, I have asked my solicitor to look at the page and hopefully will reply with clarification.

Thanks for your help.

Money_Grabber13579

Yep, the last 36 months of ownership of a private residence are exempt from CGT, provided it is not wholly/partly used for business purposes.

sparky666

Again I thank the helpful replys, I have now received a reply from my solicitor, which confirms your replys, so I am very grateful, it gives us loads more breathing space, I will in due course contact the in-land rev for clarification on our personal circumstances to ensure no trip wires.

Thanks.