Downsizing and capital gains tax?

GDB2222

“ You may want to have definitely retain, definitely get rid and " keep it until we know where we are going" categories.”

Save yourself a lot of trouble and only keep the ‘definitely retain' category. Get rid of all the rest.

theartfullodger

It depends on CGT rules when you (eventually) sell.  i.e, not necessarily on what the rules are now.  

Give the state of the economy, the HUGE increase to public sector debt during 13 years of Tory misrule I'm confidently predicting the rules will get tougher.  i.e. pretty much any answer given for your question will be a guess (including this one...)

lindos90

RAS said:

Having realised that I'd missed an important bit of information about my pension rights, I realised I could go early. I'd savings but assumed I might have to work part-time until my state pension kicked in. It's not been necessary.

I'd suggest he doesn't make any decisions for the first year, and avoid taking on new responsibilities. I discovered that my living costs reduced considerably, although higher energy costs may alter that balance now. Take a break, then plan the preparations for the house move.

Having also cleared a very stuffed house, recognise that you will both get sorting fatigue, when you're taking longer to achieve very little. Take a break and you'll probably clear in two days what seemed to need a week's work.

You may want to have definitely retain, definitely get rid and " keep it until we know where we are going" categories.

Great advice, thankyou @RAS. At the moment I'm starting to sort through things and have: keep, sell, give away/charity, recycle and tip 👍. I certainly know what you mean about sorting fatigue. After sorting my Uncles house out, and not long after, my Mum's possessions after they both passed away, the feeling is very familiar. We have a small family and all the organising was down to me, I did get to a point where I had made SO many decisions, I couldn't make any decisions! At least this time around with sorting a hoyse it will feel much more positive which will spur us on ❤️

saajan_12

sheramber said:

Is he perhaps getting confused with stamp duty  land tax  which would apply if you bought your new homw before selling the current one?

However, you can claim the tax back if you sell within 3 years of buying the new house.

If you buy and sell at the same time that doesn't apply. 

Just to clarify a few things..
* Capital Gains Tax - is based on the gain on a property you're selling, if it hasn't been your main residence for the entire time you owned it. Nothing to do with anything you might buy.
* Standard Stamp Duty - is due on any property over 250k that you buy, at tiered rates (5%, 10%, 12%..). 
* Additional Stamp Duty - is an extra 3% for additional properties, with some caveats if based on where your main residence is. 

So CGT and the additional SDLT don't apply here, but you may have some normal stamp duty.