Moving between houses and capital gains tax

biajw

Hello

I know I'm probably worrying over nothing but...

We have been living at our current (OLD) property for 4 years.
We will complete on our NEW house next week.
two weeks later the sale on the OLD property will go through.

Essentially we will own two houses for two weeks. Will we be liable for any capital gains tax on the sale of the OLD house or not. I suspect not but just want someone to ease my mind...

poppysarah

no you won't.

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

Generally, if you have lived in your home and it has been your only home all the time that you owned it, you will not have to pay Capital Gains Tax on any money you make when you sell it because it will be covered by Private Residence Relief.

However, you may not qualify for relief on the whole property if you:

• have a garden or grounds that extend to more than 0.5 hectares (roughly the size of a football pitch)
• have extensive outbuildings
• have used any part of it exclusively for business purposes
• bought it primarily in order to make an early sale at a profit

If you're selling your home and you own more than one property, or you've used part of the property for business purposes, such as using one room as an office, taking in lodgers or letting out all or part of the property for a while, you may be liable to pay Capital Gains Tax.

tyllwyd

Assuming that it has been your family home and there is no other complication, you should be fine - the capital gains tax exemption lasts for three years after you move out.
http://www.direct.gov.uk/en/MoneyTaxAndBenefits/Taxes/TaxOnPropertyAndRentalIncome/DG_4020890