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    • Halifax22
    • By Halifax22 7th Jan 18, 11:11 AM
    • 1Posts
    • 0Thanks
    Parents house and capital gains tax
    • #1
    • 7th Jan 18, 11:11 AM
    Parents house and capital gains tax 7th Jan 18 at 11:11 AM

    Our married elderly parents are purchasing a bungalow as their main residence near to our home as their health is not fab. It is a cash purchase. Their current home is on the market but the purchase of the new and sale of their old home is not part of a “chain” if that makes sense.

    As they may possibly find themselves for a very short time with two properties in their name (they will not be renting it out or anything) is there any way we can reduce or avoid CGT when their current home sells?

    Thanks for any advice in advance.

Page 1
    • Pennywise
    • By Pennywise 7th Jan 18, 11:21 AM
    • 10,230 Posts
    • 19,046 Thanks
    • #2
    • 7th Jan 18, 11:21 AM
    • #2
    • 7th Jan 18, 11:21 AM
    There's an 18 month "grace" period when selling your home and buying another, during which you can have 2 "homes", so no CGT as long as the overlap is under 18 months.
    • antrobus
    • By antrobus 7th Jan 18, 12:51 PM
    • 15,680 Posts
    • 22,332 Thanks
    • #3
    • 7th Jan 18, 12:51 PM
    • #3
    • 7th Jan 18, 12:51 PM
    And, of course, any gain would be time apportioned between the periods over which it was (a) their main residence, and (b) it wasn't.

    Depending on how long they have actually lived in the property, the amount apportioned to (b) might be very small. And there is a CGT allowance of £11,300.

    I would not worry about it.
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