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Owning two properties
Jo_Jo_101
Posts: 1 Newbie
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.!
0
Comments
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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
2 -
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.2 -
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.TadleyBaggie said:
One possibility...if they sell their existing home and move into the other, there will be no CGT liability.
Another possibility...OP, if you are classed as a dependent relative the rules are different.1
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