PLEASE READ BEFORE POSTING: Hello Forumites! In order to help keep the Forum a useful, safe and friendly place for our users, discussions around non-MoneySaving matters are not permitted per the Forum rules. While we understand that mentioning house prices may sometimes be relevant to a user's specific MoneySaving situation, we ask that you please avoid veering into broad, general debates about the market, the economy and politics, as these can unfortunately lead to abusive or hateful behaviour. Threads that are found to have derailed into wider discussions may be removed. Users who repeatedly disregard this may have their Forum account banned. Please also avoid posting personally identifiable information, including links to your own online property listing which may reveal your address. Thank you for your understanding.

Owning two properties

My parents own two properties, both mortgage free for the past 30 years or so. They live in one property and I live in the other (rent free). I want to move house… basically sell the one I’m living in and purchase another straight away. But are we/my parents going to be hit with a big capital gains tax bill. It’s stressful at the best of times when moving house but this seems to have opened up a lot of tax bills that we don’t really understand. If anyone has any advice on how things work I would be very grateful.!

Comments

  • propertyrental
    propertyrental Posts: 3,391 Forumite
    1,000 Posts First Anniversary Name Dropper
    edited 3 January 2023 at 11:18PM
    Yes.

    Stressful why? Assuming they've made a good profit (capital gain) over the last 30 years they simply calculate the gain and hence the tax, submit a declaration toHMRC (within 30 days of sale) and rub their hands with glee at the cash they've made in the last 30 years.

    https://www.gov.uk/tax-sell-property/work-out-your-gain
  • TadleyBaggie
    TadleyBaggie Posts: 6,538 Forumite
    Part of the Furniture 1,000 Posts Photogenic Name Dropper
    If they stay in their existing home and sell the other, then yes CGT will rear its head for your parents (not you).

    One possibility...if they sell their existing home and move into the other, there will be no CGT liability.
  • Alderbank
    Alderbank Posts: 3,724 Forumite
    Eighth Anniversary 1,000 Posts Name Dropper

    One possibility...if they sell their existing home and move into the other, there will be no CGT liability.
    Well, there will be no immediate CGT to pay but in the long run it does not make much difference. If they sell in the future the same CGT will be due for their period of ownership before they moved in.

    Another possibility...OP, if you are classed as a dependent relative the rules are different.
Meet your Ambassadors

🚀 Getting Started

Hi new member!

Our Getting Started Guide will help you get the most out of the Forum

Categories

  • All Categories
  • 349.8K Banking & Borrowing
  • 252.6K Reduce Debt & Boost Income
  • 453K Spending & Discounts
  • 242.8K Work, Benefits & Business
  • 619.5K Mortgages, Homes & Bills
  • 176.4K Life & Family
  • 255.7K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 16.1K Discuss & Feedback
  • 15.1K Coronavirus Support Boards

Is this how you want to be seen?

We see you are using a default avatar. It takes only a few seconds to pick a picture.