Buying a new house before youve sold the old one...

Grego_2

Hi,

for a few reasons that i wont trouble you with my wife and i are moving house and buying a house before we have sold the one we are in at the moment.

It is more than likely that we will be in the new one and the old one still wont be sold or possibly even under offer.

My question is - because we would have 2 houses - would we get stung for CGT - captial gains tax when we do eventually sell the old house?

Its not like we are holding the house to make a gain - just that it hasnt been bought


Any help appreciated

Ian_W

Not an accountant or expert in any sense, but from reading these threads because of my own CGT issues, pretty confident it's NO.

There is an exemption for your principal private residence [PPR]. If a property was your PPR but ceases to be so, as in your case, the final 3 years ownership is also CGT exempt. Even if that wasn't the case, and I'm pretty sure it is, CGT would only apply to the gain in value between your old prop ceasing to be your PPR and its sale.

Have a look on the tax saving board, there are a couple of housing/CGT threads currently running.

Grego_2

Thanks - will look out for the threads....


any other advice from anyone else appreciated too


ta