Capital Gains Tax exempted?

pjk1982

Afternoon,

We are looking move house, have a reservation on a new build for March 2022. We plan to stay in our current home until we move into the new home.

Will we be liable for CGT when we sell the house we're living in as we will have two houses for a period of time? We've owned the first home since 2003.

We don't plan to hang on to the first house ; we're lucky enough to be able to buy without needing to sell this one first, avoiding having to rent etc

Any help would be really appreciated!

[Deleted User]

You are only selling one property, not two! That property has been your main residence throughout - No CGT!

Jeremy535897

I assume you are concerned about the period after you move into house 2 but haven't sold house 1? You have nine months after house 1 ceases to be your main residence to sell it, before a part of the gain may become chargeable. See:
https://www.gov.uk/government/publications/private-residence-relief-hs283-self-assessment-helpsheet/hs283-private-residence-relief-2021#calculating-the-gain-where-only-partial-relief-is-due for more details.

You can nominate one of the houses to be your main residence for the period you still own both, if you also still live in both, and if you own house 2 before it is finished, there can be a further exemption for up to two years before it is finished. See HS283 again.

[Deleted User]

I had assumed the same Jeremy but the op states:

’We plan to stay in our current home until we move into the new home’

but perhaps what you have stated is a reasonable assumption.

Jeremy535897

OP states:

 We plan to stay in our current home until we move into the new home.

and states:

Will we be liable for CGT when we sell the house we're living in as we will have two houses for a period of time?

I think this also refers to the house we are currently living in, but I agree it could have been expressed more clearly.

pjk1982

Really appreciate your time and comments, has put me at ease!