2nd Home Capital Gains Tax

nirish

Due to my property sale falling through I am planning to make my purchase as a second property. How long do I have to sell my original property before I am eligible to pay Capital Gains?

I believe it may be 18months but I finding this quite hard to pin down so any useful links would be appreciated.

On a separate note I believe I have 3yrs to complete the sale to reclaim the 2nd home stamp duty I will have to fork out, is this correct?

00ec25

what aspect of Google are you unable to use?

https://www.gov.uk/government/publications/private-residence-relief-hs283-self-assessment-helpsheet/hs283-private-residence-relief-2018

https://www.gov.uk/guidance/stamp-duty-land-tax-buying-an-additional-residential-property

ProDave

PRR covers the period when it is your main home, AND the last 18 months of ownership (during which time it may be empty and you are living in your new house)

After that 18 months, if it just sits empty, it may be doe for some CGT but chances are your CGT allowance will reduce any payment due to £0

However if it is going to be longer before you sell it, by letting it for a period, you then become eligible for letting relief as well as PRR. So although it may sound a little odd, there are some circumstances where you can reduce, or eliminate and CGT liability by letting it for a period.

SDLT_Geek

If you sell the original property within 3 years of buying the new one you should be able to reclaim the extra 3% SDLT. But remember there is a relatively short period following the sale to make the application for repayment. This can be as short as 3 months. I have come across several cases of people who missed it. There seems to be so much focus on the three year period that people forget the 3 month rule.