Capital Gains tax when buying new home before selling current home

Weave

Hi


Just want to check I understand the CGT rules when selling my home. Your input is much appreciated.


I currently live in a house full time and have done for 3 years now. I want to buy a new home but it needs some work so I am considering selling my current home after owning and doing up the new one for about 6 months. I will therefore own two properties for around 6 months.


Question 1 - I just want to check that when I come to sell my current home I will not create a CGT liability as it will be treated as my home so I get private residence relief?


Question 2 - If we do up the new home and move in leaving the old one empty do I have a set period of time in which to sell it before it is no longer treated as my home and benefiting from private residence relief?


Thanks for your help.

booksurr

Q1 it was your Principal Private Residence so gets PRR relief
Q2 12 months after purchase for the new property, final 18 months for the old property are valid PRR exemptions in the circumstances you outline

read https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/323679/hs283.pdf

chris_m

Weave wrote: »

Question 1 - I just want to check that when I come to sell my current home I will not create a CGT liability as it will be treated as my home so I get private residence relief?

Correct, provided you sell it quickly enough - your planned six months will be fine.

Question 2 - If we do up the new home and move in leaving the old one empty do I have a set period of time in which to sell it before it is no longer treated as my home and benefiting from private residence relief?

Yep - 18 months after you no longer class it as your home.

Weave

Brilliant. Thanks very much.