Capital gain tax

sarammackk

I bought a house in 2003 and lived there until 2010. At that time, I purchased another house, moved into it, and rented out the first property. Two months ago, I bought a third property and am now considering selling my current home to move into the new one. In this case, would I need to pay capital gains tax on the sale of my current residence?

El_Torro

Since your current property has been your residence since you bought it I would say no, there is no Capital Gains Tax to pay.

When you buy your next home you will need to pay the additional Stamp Duty of 5% as well as the standard Stamp Duty. Assuming you still own the property that you rent out. 

Keep_pedalling

No CGT and you will be able to reclaim the additional SDLT you paid on the 3rd house.

El_Torro

Keep_pedalling said:

No CGT and you will be able to reclaim the additional SDLT you paid on the 3rd house.

One for the OP to come back and confirm but there's no mention of selling the first property in the opening post. So it won't be possible to reclaim the additional SDLT if that property isn't sold.

GrumpyDil

If they sell their current (2nd house) they will be able to claim the additional stamp duty back.

DE_612183

GrumpyDil said:

If they sell their current (2nd house) they will be able to claim the additional stamp duty back.

not sure as they will still have property 1

p00hsticks

DE_612183 said:

GrumpyDil said:

If they sell their current (2nd house) they will be able to claim the additional stamp duty back.

not sure as they will still have property 1

Assuming England and Wales,.
   
If they sell property 2, that they have lived in for the entire period of ownership there will be no CGT to pay.  

When they bought property 3 they will have paid the additional SDLT rate as they were increasing the total number of properties they own. However if they move into it and sell property 2 within 3 years then they can claim the additional SDLT back as they have now replaced their main residence. 

There will be a potential CGT liability if and when they come to sell property 1. 

sarammackk

Thank you all for taking the time to help me with this, it's all been very much appreciated.