Query on selling a house and capital gains tax

sm99_3

I own only 1 house which has sold subject to contract. I'll be starting university in september but the sale of my house won't be completed before I start.

As uni is 160 miles away I'll be living on campus. My house at the moment is my main and only residence but obviously when I move to uni it won't be any longer.

To make matters 'worse' the royal mail won't re-direct mail to multi-occupied addresses such as uni managed accommodation so I'll be re-directing my mail to a relatives address while I inform the various companies that I have moved.

I won't be buying a new house straight away as I really don't know where I want to move to.

So, would anyone know if I'd have to write to HMRC to nominate my house as my main home and then inform them once the sale has gone through that I no longer live there?

Any advise would be very much appreciated

MJS2011

Was the property always your main and only residence (since you owned it)?

If so, and you've moved out to uni, you should be ok. The last three years of your ownership of the property would be exempt from Capital Gains Tax. I think Helpsheet 283 on the HMRC website covers this.

There is of course no harm in sending HMRC a letter, telling them you've moved and asking them to confirm there's no Capital Gains Tax due.

sm99_3

Hi MJS2011,


Thanks for the reply. Yes it's been my own and main residence since I inherited it. It was put in my sole name back in 2008 but I've lived here since I was 8 months old.

MJS2011

There should be no Capital Gains Tax to pay then!

Better than the helpsheet is if you go to the HMRC website and put
"Capital Gains Tax relief on your own home" in the search engine. That clearly says:-

The final three years (36 months) always qualify for relief, even if you weren't living there, as long as it's been your only or main home at some point during the time that you've owned it.

sm99_3

Thank you! you've made me vey happy