house in spouse name re tax

julie88_2

we may be byuing a new home before we sell our present one, there is a risk this may lead to capital gains tax.

but if the present house is in my name only and a new one goes in my husbands name only will we avoid a capital gains tax.

Gary123456790

Hi,

If I remember correctly you get 3 years before CGT kicks in on a 2nd property.

See https://forums.moneysavingexpert.com/discussion/84009

Also there is a 10k "tax free" band per person for CGT so if you sold it later on (as I understand it) unless it had gone up by > 10k per year if owned by 1 person then you wouldn't be liable.

Im not an expert but this is what I understand.

Gary.

pjcox2005

Hi,

As a married couple you have to elect for the same private residance.

Gary's answer isn't quite correct in that it is the last 3 years that will qualify for principal private residence relief, so basically on buying the second house, elect for the to be your main residence and then sell the other within three years and capital gains tax won't apply.

If you held on for longer than 3 years then you would only bring in a proportion of the gain as taxable so probably still covered by annual exemptions (which you both have one each).

Thrugelmir

julie88 wrote: »

we may be byuing a new home before we sell our present one, there is a risk this may lead to capital gains tax.

I would be more concerned about losing money until the property is sold. Rather than tax on a gain.