Capital gains tax when selling home

jx4421

Hi,

I am currently mortgage free and own a property outright. I intend to buy a second property, then once that transaction is complete sell my current one shortly after. This way I avoid any chain holding up the process on my side.

I understand that this will mean I need to pay a higher rate of SDLT which I can claim back if I sell my original home within a certain amount of time.

Would I be eligible for paying any CGT or any other taxes on the original property? My aim is to immediately live in the new property and sell the original property within 6 months. 

I will consult my solicitor about my actual tax eligibility, I am just trying to get a rough idea to budget.

Thanks

propertyrental

The property you own, and will sell - is it your main residence?

jx4421

Yes, I then intend to buy my new property, move into it and leave the original property vacant for a few months until I can sell it 

horsewithnoname

If, and it’s a big if, capital gains tax arose it would only be on the gain made between moving out and selling. In c six months it’s unlikely to gain enough to worry about. 

Brie

Watch out for all those other things about vacant property....insurance becoming void if vacant of 90? days etc.

jx4421

Brie said:

Watch out for all those other things about vacant property....insurance becoming void if vacant of 90? days etc.

Great advice thanks, I will check with my buildings insurance