paying of mortgage early

markyb12

me and my girlfriend are moving sometime this year, we are moving up to orkney, so will initially be renting.
rang mortgage company to get a balance and its £55k including fees and early repayment.
now not sure what to do, we have the money to pay it off in full, so if we do that and then put the house up for sale and leave it with the estate agent to sell for us while we are up in orkney . if we do this will we have to pay tax on the house sale money. if we do then probably pointless paying it off with money thats already been taxed to getting sale money that needs to be taxed

davidmcn

No tax on the sale proceeds if it's been your main residence the whole time (and anyway the timing of when you pay off the mortgage would make no difference to your Capital Gains Tax liability).

markyb12

Thanks
Gives us more options now , so would be able paynit off and move and leave estate agent to sell it for us

AnotherJoe

Don't know what you mean by "more options" You can do the same (eg leave agents to sell it) if you haven't paid it off as well. It makes no difference there's no tax either way and it makes no difference to the estate agent either.

What it might do is make it simpler buying in that you won't have any extra stamp duty (whatever it's called in Scotland) to pay and then reclaim should you buy before selling.