Capital gains tax

MaxHeadroom_2

Due to a disability (wheelchair user) I need to move home because of increasing difficulties in my current home.

Most properties I have looked at need changes to the interior for me to maneuver without problems, which means I cannot sell my current property until the new one is ready. This means that for a while I will own two properties at the same time.

My question is, when I finally move into the new property and can then sell my current property, will I be liable for Capital gains tax when I sell it? Will I also be liable for Council Tax on two properties?

CLAPTON

you have three years before cgt is applicable

Savvy_Sue

Council tax may vary from one area to another: some councils allow up to 6 months free if the property is empty, I believe.

John_Pierpoint

You have to be careful about the history of the property, it might have used up its "tax holiday" already.
The interpretation of the rules for your local authority is probably on its web site.

jimmo

As far as I am aware there are no concessions in the Capital Gains Tax rules for disabled people and you will have to rely on the standard rules.
The first problem, the sale of your current home, seems to be pretty straightforward.
It will be your main or only residence until the day you move out and then, as Clapton says, you will have 3 years to sell it without having to worry about Capital Gains Tax.
The second problem is your new house. This appears to be the one where you will have an initial period of ownership during which it will not be your main or only residence. That is the period from the date of purchase until the house is adapted to suit your needs.
The standard period of grace is one year but can be extended to 2 years at HMRC’s discretion.
In my time at HMRC I only saw a handful of cases where a person bought a property to be their home and took more than a year to get it up to scratch. The ones who had evidence of delays caused by planning permission / buildings regulations problems got the discretionary 2 years. Those who ran out of money didn’t.
I imagine that, as a bare minimum, you need your new home to have level surfaces and wider than normal doorways and, whilst appreciating that it is going to cost you, I would, as a former taxman, struggle with the concept that it would take more than a year from the date of purchase, to get the new house sorted for your needs.
If you can sell your current home within 3 years of moving out there will definitely be no Capital Gains Tax consequences. There could, possibly be Capital Gains Tax consequences when /if you sell your future home and you would be wise to preserve your own records just in case.

MaxHeadroom_2

Thanks all for your input on this matter.

Firstly, I was not asking about concessions for disabled people, I was just pointing out the reason I required two properties for a while, to save anyone asking.

The main bugbear with properties I have looked at is the width of the bathroom/toilet door. They are all narrower than all the other doors, including my current property. In a majority of cases this is the only change that needs to be made so it wouldn't take long to change this but it needs to be done before I can move in, hence the need for two properties for a short period. I don't think I would need planning permission for this to be done would I?