Delay between Buying and Selling - Capital Gains Tax Liability?

alcester

Hi all,

I am in the process of moving approx 100 miles from 'A' to 'B' due to work.

I have been lucky enough to gather enough finances together to buy a property in 'B' without needing to sell in 'A', and that purchase is almost complete.

My intent is to sell my house in 'A' as soon as possible, but for a period of time I will own (albeit mortgaged) two properties.

Is there anything I should do to make sure there is no CGT liability? Do I need to maintain my 'primary' residence as 'A' in the eyes of HMRC whilst it is being sold?

Many Thanks in advance...

nomoneytoday

AFAIK you have a 3 year period to sell before CGT comes into the picture

martindow

There needs to be a gain in order for CGT to be an issue. This is only going to be an issue if the value has risen from today's value when you come to sell.

If a house is being left empty for a length of time you need to look at your insurance to ensure it is covered. Many policies have limitations if there is no one living there.

alcester

Thanks Both,

Unless things go very badly wrong, I hope to have sold within 3 years - If not, there might need to be a conversation with HMRC about Capital Loss Tax

The Insurance query is noted. My current policy requires the property not to be left unoccupied for more than 28 days at a time. I'll contact my insurer to get all the ins and outs of that...

silvercar

martindow wrote: »

There needs to be a gain in order for CGT to be an issue. This is only going to be an issue if the value has risen from today's value when you come to sell.

If a house is being left empty for a length of time you need to look at your insurance to ensure it is covered. Many policies have limitations if there is no one living there.

The first para is wrong on two counts. The last 3 years of ownership are exempt from CGT if it was your home at any time, so a gain is irrelevant. Secondly any CGT calculation, if it was necessary is always based on the purchase price and selling price and never on the value at an interrim point.

Good point on insurance.