Sell main home and move permanently into second home

sharon5cc

My husband and I have owned our home for 38 years. If we sell it and move into our other house we own ( not main home) do we pay any CGT Or any other taxes ?

Keep_pedalling

If you have lived in it for all that time no. If you have not then possibly.

sharon5cc

Yes, We have always lived there. Thank you for responding. 

Sam_666

Have you ever notified hmrc in writing which home is your primary residence and was it within 2y of getting 2nd home?
If your answer to above is no, then prepare for some fun times with hmrc once you sell home.

Albermarle

I think if you ever sell the home you are moving in to, you will be liable for CGT on any increase in its value, from when you bought it, to when you moved in and it became your main residence.
So I would guess when you move in you need it be properly valued

Keep_pedalling

Albermarle said:

I think if you ever sell the home you are moving in to, you will be liable for CGT on any increase in its value, from when you bought it, to when you moved in and it became your main residence.
So I would guess when you move in you need it be properly valued

It does not work like that, it is based on purchase price (or value when gifted or inherited) and value on disposal, less primary residence relief for the period you live in the property. 

Albermarle

Keep_pedalling said:

Albermarle said:

I think if you ever sell the home you are moving in to, you will be liable for CGT on any increase in its value, from when you bought it, to when you moved in and it became your main residence.
So I would guess when you move in you need it be properly valued

It does not work like that, it is based on purchase price (or value when gifted or inherited) and value on disposal, less primary residence relief for the period you live in the property. 

Thanks for the clarification.

sharon5cc

Oh it really is a minefield!  So we bought main residency for 60k and sell for 300k and move into our other home forever (that we purchased for 250k).  When we both die, and we leave our house to our children, do they pay CGT on it or do the normal inheritance tax rules apply? I am so grateful for your responses. We are just weighing up what to do in our life. 

silvercar

sharon5cc said:

Oh it really is a minefield!  So we bought main residency for 60k and sell for 300k and move into our other home forever (that we purchased for 250k).  When we both die, and we leave our house to our children, do they pay CGT on it or do the normal inheritance tax rules apply? I am so grateful for your responses. We are just weighing up what to do in our life. 

No CGT on death. The current value of all homes will be included in your estate. 

For the moment, selling what has always been your main residence won’t incur any CGT.

if you move into your other home and sell it in say 10 years time, then CGT may be payable on that sale. It would be based on the difference between selling and buying price with an allowance made for the time it was your main residence (in proportion to your time of ownership). Though who knows what the rules will be in 10 years time.
?

RAS

No CGT on selling primary residence, assuming you've lived there the whole time you owned it.

If you sell the holiday home in 10 years, having owned it 30 years, CGT on approx 66% of increase in value. 

If you still own on death, it'll be part the estate for IHT purposes, so will depend on what size of estate, whether you leave stuff to children etc. Under current rules.