Alan, thank you for your prompt reply.
Your question is -
Now, we have a further acceptable offer on that first house. Will we have to pay CGT on its sale?
First of all, you have up to Dec 2015 to notify HMRC of your decision on which property is your main residence for CGT purposes. Assuming you elect the second property to be your main residence from date of acquisition.
Now we come to first property and CGT implications on disposal of it..
- period to Dec 2013 would qualify for private residence relief provided it was your only or main residence up to that point;
- there is a further relief to cover last 18 months of ownership whether you lived in the property or not provided it was your main residence at some point during period of ownership;
The above two will cover you upto say Jun 2015.
If you were to sell to sell the property now, all your gain would be covered by relief as aforementioned.
In the event it does not, your have annual gains allowance to use against chargeable gain which would take care of £11,100 per owner..
In my considered view, there would be no CGT payable.
I hope this is helpful and answers your question.
If you have any other questions, please ask me before you rate my service – I’ll be happy to respond.