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bigduckontax
bigduckontax, Accountant
Category: Tax
Satisfied Customers: 4073
Experience:  FCCA FCMA CGMA ACIS
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I'm selling my current home but to ensure I don't miss out

Customer Question

I`m selling my current home but to ensure I don't miss out on the home I want to buy I`m thinking of using savings to buy the new house. I don't intend to live in it until my current house is sold. Will I be liable to CGT when I sell my current house? If so will it be based on the full sale price or on the difference between the price paid and the final sale price? There is no mortgage to be repaid.
Submitted: 2 years ago.
Category: Tax
Expert:  bigduckontax replied 2 years ago.

Hello, I'm Keith and happy to help you with your question.

Not many people realise that the ownership and subsequent disposal of landed property always gives a liability to CGT on the gain realised, but almost everyone is entitled to Private Residents Relief (PRR). Your current house would appear to be your sole or main domestic residence. On that assumption you are entitled to PRR which is at 100% of any gain. Furthermore that last 18 months of ownership do not count as you are deemed to be in residence even if you are actually living elsewhere and PRR is extended.

I do hope I have been able to set your mind at rest on this matter.