Capital gains worry

Halle71

Hello

We have two houses, one that is our home and one that we rent out and it is worth about 2/3 of our home.

We are planning to move to NZ (my husband is kiwi) in about a year, and would like to sell our home and keep the rental property for at least a couple of years. We would probably have to rent in NZ while we look for a house as it's nigh on impossible to even house hunt from here because most houses sell at auction.

I've suddenly had a panic that we will have to pay CGT on our main residence if we sell it and don't but our next house in the UK.

I know the answer is out there, but I can't seem to find the correct search terms and keep getting stamp duty info or generic capital gains info so wondered if anyone could advise me please?

Many thanks

BoGoF

Selling your main residence is exempt from CGT, it doesn't matter what you do with the proceeds.

https://www.gov.uk/capital-gains-tax/what-you-pay-it-on

Halle71

Fantastic - thank you.

One less thing to worry about :-)

[Deleted User]

Halle71 wrote: »

Fantastic - thank you.

One less thing to worry about :-)

BOGOF is, of course, correct but have you considered the INCOME tax position regarding your rental property if your move abroad? See below regarding the Non-residents landlord scheme

https://www.expertsforexpats.com/relocation/renting-out-your-home/

00ec25

you have 18 months after you move out of the property in which it retains its "exempt" status for CGT purposes. After that period it becomes liable for CGT, although the amount you'd pay would be based on the % of time it was not exempt, so in other words unless you take years to sell, forget about CGT as you'll retain your CGT allowance anyway so that gives further breathing space

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

Cook_County

The UK does however charge a limited amount of CGT on residential property sold by non-UK residents. A return would need to be filed within 30 days of sale.