capital gain tax

prishaan

Hi everyone, 

I will greatly appreciate your thoughtful advice on an issue I am facing at the moment. I am selling my property where I live as I am planning to relocate. The Sale process is near completion, the buyer is ready to exchange the contact but unfortunately, I couldn't find a property to buy and  I can move into. In fact, I did find one but the sales fell through after the survey.( some negative outcome).

 Now, the buyer is asking me why can not I go rental as he is not willing to wait. Its now 4 moths since I accepted the offer.  My question is if i sell away, took the equity,  and go to rental will that subject my equity lying the bank to a capital gain tax or any other taxes before I am able reinvest? 

What the law says?

Thank you in advance for your precious and thoughtful suggestions and advice.

Regards

Keep_pedalling

There would be no CGT liability if you did that. The only tax you might face is income tax on any interest the cash earns while you wait to find somewhere suitable.

andys15

No. If it’s your only house you pay no CGT. 

prishaan

Keep_pedalling said:

There would be no CGT liability if you did that. The only tax you might face is income tax on any interest the cash earns while you wait to find somewhere suitable.

thank you so much indeed! really appreciting~

prishaan

andys15 said:

No. If it’s your only house you pay no CGT. 

thank you! its so helpful~

theartfullodger

If you put proceeds into say shares which then doubled in value, yes you would pay CGT.  But just cash in savings account with s#d all interest and no opportunity for growth, no , no CGT.

prishaan

theartfullodger said:

If you put proceeds into say shares which then doubled in value, yes you would pay CGT.  But just cash in savings account with s#d all interest and no opportunity for growth, no , no CGT.

thank you so much~

Thrugelmir

Are you willing to move into a rental?  Isn't a cost and hassle free option for you. That's if you can find a suitable one. As LL's aren't generally looking for short term tenants. 

prishaan

Thrugelmir said:

Are you willing to move into a rental?  Isn't a cost and hassle free option for you. That's if you can find a suitable one. As LL's aren't generally looking for short term tenants. 

Yes, you are right. Hope I can manage something. Finger crossed. thank you~