Tax after selling house

robp · 12 January 2007 at 2:00PM

The sale of my house is moving along finally, and I expect the equity to be around £80,000.

As I've moved into my new wife's house, I want to bank the equity until we find somewhere new to move to together (also using any equity from the sale of her house).

My question is:- Will I have to pay any Capital Gains Tax on this 80k ?

It's my first time selling, and I'm sure the solicitor will tell me at some point....I'm just trying to get an idea early.

Thanks for any help!

robp · 12 January 2007 at 2:09PM

Just found this on Direct.gov site:-

Tax on the sale of your main home
You do not have to pay tax as long as:

you bought it, and made any expenditure on it, primarily for use as your home rather than with a view to making a profit
the property was your only home throughout the period you owned it (ignoring the last three years of ownership)
you did actually use it as your home all the time that you owned it and, throughout that period, you did not use it for any purpose other than as a home for yourself, your family and no more than one lodger
the garden and area of grounds sold with it does not exceed 5,000 square metres (about one and a quarter acres) including the site of the house