Capital gains tax on selling an expensive house for a cheaper one

fireballpaul

Current house worth £250k and new house will be £100k.   Can I move house and pocket £150k after fees? Or is that difference subject to CGT.

Thanks

eskbanker

If this house is your home then yes, you can downsize and realise gains without without CGT liability....

fireballpaul

eskbanker said:

If this house is your home then yes, you can downsize and realise gains without without CGT liability....

Thanks yes, it's my current address and where I live.    Great so zero CGT.  Nice.  

MarlowMallard

Correct, but note that it must have been your main home for nearly all the time you owned it...  if you rented it out in the past and lived elsewhere then moved in, only the fraction of time you lived there plus the final year or so is CGT-free.  A married/civil partner couple can only have one "main home" between them. 

fireballpaul

MarlowMallard said:

Correct, but note that it must have been your main home for nearly all the time you owned it...  if you rented it out in the past and lived elsewhere then moved in, only the fraction of time you lived there plus the final year or so is CGT-free.  A married/civil partner couple can only have one "main home" between them. 

No problem. It's been my main home for 20 years,  rented it from my parents for about 17 years and now have it in my name for the last 3. 

Nomunnofun1

fireballpaul said:

MarlowMallard said:

Correct, but note that it must have been your main home for nearly all the time you owned it...  if you rented it out in the past and lived elsewhere then moved in, only the fraction of time you lived there plus the final year or so is CGT-free.  A married/civil partner couple can only have one "main home" between them. 

No problem. It's been my main home for 20 years,  rented it from my parents for about 17 years and now have it in my name for the last 3. 

Presumably it was not your parent’s main residence then? In that case how was the disposal of the property to you by your parents three years ago treated with respect to capital gains tax? 

Can you confirm how the property ended up in your name?

silvercar

Nomunnofun1 said:

fireballpaul said:

MarlowMallard said:

Correct, but note that it must have been your main home for nearly all the time you owned it...  if you rented it out in the past and lived elsewhere then moved in, only the fraction of time you lived there plus the final year or so is CGT-free.  A married/civil partner couple can only have one "main home" between them. 

No problem. It's been my main home for 20 years,  rented it from my parents for about 17 years and now have it in my name for the last 3. 

Presumably it was not your parent’s main residence then? In that case how was the disposal of the property to you by your parents three years ago treated with respect to capital gains tax? 

Can you confirm how the property ended up in your name?

These points will be relevant for the parent’s tax position ie a potential CGT liability, but won’t effect OP’s own tax position.

Mutton_Geoff

Worth reading HMRC guidance as some of the comments in this thread may be misleading.

https://www.gov.uk/tax-sell-home

Nomunnofun1

silvercar said:

Nomunnofun1 said:

fireballpaul said:

MarlowMallard said:

Correct, but note that it must have been your main home for nearly all the time you owned it...  if you rented it out in the past and lived elsewhere then moved in, only the fraction of time you lived there plus the final year or so is CGT-free.  A married/civil partner couple can only have one "main home" between them. 

No problem. It's been my main home for 20 years,  rented it from my parents for about 17 years and now have it in my name for the last 3. 

Presumably it was not your parent’s main residence then? In that case how was the disposal of the property to you by your parents three years ago treated with respect to capital gains tax? 

Can you confirm how the property ended up in your name?

These points will be relevant for the parent’s tax position ie a potential CGT liability, but won’t affect OP’s own tax position.

I am well aware of that

fireballpaul

silvercar said:

Nomunnofun1 said:

fireballpaul said:

MarlowMallard said:

Correct, but note that it must have been your main home for nearly all the time you owned it...  if you rented it out in the past and lived elsewhere then moved in, only the fraction of time you lived there plus the final year or so is CGT-free.  A married/civil partner couple can only have one "main home" between them. 

No problem. It's been my main home for 20 years,  rented it from my parents for about 17 years and now have it in my name for the last 3. 

Presumably it was not your parent’s main residence then? In that case how was the disposal of the property to you by your parents three years ago treated with respect to capital gains tax? 

Can you confirm how the property ended up in your name?

These points will be relevant for the parent’s tax position ie a potential CGT liability, but won’t effect OP’s own tax position.

The parents tax position has already been sorted.  The house is gifted over and has been for nearly 3 years.  

The only thing left is the remainder of the 7 year rule to avoid INHERATANTS TAX.    

fireballpaul

Nomunnofun1 said:

fireballpaul said:

MarlowMallard said:

Correct, but note that it must have been your main home for nearly all the time you owned it...  if you rented it out in the past and lived elsewhere then moved in, only the fraction of time you lived there plus the final year or so is CGT-free.  A married/civil partner couple can only have one "main home" between them. 

No problem. It's been my main home for 20 years,  rented it from my parents for about 17 years and now have it in my name for the last 3. 

Presumably it was not your parent’s main residence then? In that case how was the disposal of the property to you by your parents three years ago treated with respect to capital gains tax? 

Can you confirm how the property ended up in your name?

it was gifted over and some CGT was paid.