Capital gains exemption period??

Diz_LFC

Hi,
I have recently got married and we both own our own properties (each currently in our sole names). We are looking to buy a new home together and sell one, or both, properties to fund this.
I understand that we both have to nominate the same property as our main residence, so if we say my property is our main residence and then sell it to buy another main residence, while keeping my wife's property to rent out, will we have to pay the extra 3% Stamp Duty when buying our new main residence?
As we are selling our main residence and replacing it with another main residence (within 3 years) I believe we won't, from what I've read.

If we were to sell both properties will we get hit with Capital Gains for my wife's property?

Is there a period after getting married that we will be exempt from any Capital Gains when selling my wife's property?
My uncle reckons we have 6 months to sell one of them before we would need to pay Capital Gains on it, but another family friend reckons its 18 months.

We have been searching around online to find the answers to the exemption period, but have been unable to find out anything.
Thanks for any help you can give us on this.

Thrugelmir

This is what you are looking for,

https://www.gov.uk/tax-sell-home/private-residence-relief

Diz_LFC

Thrugelmir wrote: »

This is what you are looking for,

gov.uk/tax-sell-home/private-residence-relief

Thanks Thrugelmir,
I had looked through this site but got confused and lost.

Ok, looks like this is what I was looking for:
Quoted from gov.uk/tax-sell-home/absence-from-home
"Periods that always qualify for relief
No matter how many homes you own or where you lived at the time, you always get relief for:
- the last 18 months before you sold your home
- the first 12 months you owned the home if it was being built, renovated or you couldn’t sell your old home
You must have lived in the home as your only or main residence at some point while you owned it.
You get relief for these periods even if you nominated a different home as your main home."

So, if I am interpreting this right, then..... as long as my wife sells her property within 18 months of us getting married, then we won't have to pay Capital Gains on it.

Is that correct??

booksurr

Diz_LFC wrote: »

So, if I am interpreting this right, then..... as long as my wife sells her property within 18 months of us getting married, then we won't have to pay Capital Gains on it.

Is that correct??

that is correct. The date of marriage is the crucial factor as the clock ticks from then as it assumes you were living together as err.... man and wife

as for SDLT you will not have to pay the higher rate for the reason you understand - the martial home is the main residence and it is that which is being sold and it is that which is being replaced by the new marital home

obviously if the sale and purchase are not on the same day you will have to pay the higher rate but will, as you understand, be able to claim a refund of any cash you paid if the sale of the ex main residence/marital home completes within 3 years