Capital Gains Tax

tottenham10

Hi all, I have lived in my current property for 13 years and have been looking at Bungalows to buy as our next home. A bungalow has come onto the market that we are very interested in.                                             My question is: I can buy the bungalow as a cash buyer. If I do this but am unable to sell my property whilst purchasing the bungalow would I be classed as having 2 properties and be liable to pay Capital gains tax when I sell my current property? I Will not be renting my current property it will be empty until sold.                                      Thanks In Advance, Pete

Slinky

You will have  to pay the additional 3% stamp duty on buying the property, but assuming your current home is your main residence and has been your main residence all the time you have owned it, you will be able to reclaim the 3% if you sell it within 3 years of the bungalow's completion date., with no CGT being due.

ProDave

If it takes a very long time to sell your present house, there is a slim chance that when you sell the bungalow later in life that may be subject to some CGT as for the first part of it's ownership it will not have been your main residence.

But that is likely to be a long way in the future and who knows what the CGT rules will be then, so regard it as a theoretical possibility not something to get concerned about.

badger09

ProDave said:

If it takes a very long time to sell your present house, there is a slim chance that when you sell the bungalow later in life that may be subject to some CGT as for the first part of it's ownership it will not have been your main residence.

But that is likely to be a long way in the future and who knows what the CGT rules will be then, so regard it as a theoretical possibility not something to get concerned about.

OP is proposing moving into bungalow & leaving current home empty. So it would be current home which might attract CGT if it takes a long time to sell.