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TonyTax
TonyTax, Tax Consultant
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Experience:  Inc Tax, CGT, Corp Tax, IHT, VAT.
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Tony, I'm Gary. I currently own and live in my own home

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Hi Tony, I'm Gary. I currently own and live in my own home which is paid for outright but do not like the neighbours to a point where I have found another home very nearby in the same street but with completely different neighbours. My house is not yet on the market for sale as there are some small jobs that need doing and should be ready to sell within the next four weeks. However, the house that I want to buy is being sold right now and I may have to put in an offer today. I can afford to buy the new house without requiring a mortgage so time needed to gather funds is not an issue. But, it is possible that I will own two propoerties for a short time as an overlap situation. Does that mean that if I sell my curent house after I have purchased the new house I would be liable for any capital gains tax ?
Submitted: 1 year ago.
Category: Tax
Expert:  TonyTax replied 1 year ago.
Hi. Assuming that you have lived in the house you wish to sell for the entire period of ownership to date and it sells within 18 months of your moving out then the gain will be completely exempt from Capital Gains Tax. Take a look at HS283 here for confirmation. Even if it took longer to sell, only that proportion of the gain when you were not living in the property and which is not covered by the last 18 months of ownership will be subject to CGT with the first £11,100 of each part-owner's share of the gain being tax free. If after the purchase of the second house you then own two properties, you will have to pay the increased stamp duty under the new rules set out here. However, so long as you sell the first house within 18 months of acquiring the second you will be able to claim a refund of that extra stamp duty. I hope this helps but let me know if you have any further questions.
Customer: replied 1 year ago.
Thank you, ***** ***** excellent advice. I was totally unaware of the ability to claim a refund of that extra stamp duty, how would I go about claiming that and from whom ? Would my conveyancer be able to deal with that for me if I sell the first house within 18 months of aquiring the second ?, which is very likely indeed.
Expert:  TonyTax replied 1 year ago.
See paragraph 3.2 of the SDLT notes here. It would appear that the government is still formulating a system for refund applications.
TonyTax, Tax Consultant
Category: Tax
Satisfied Customers: 15886
Experience: Inc Tax, CGT, Corp Tax, IHT, VAT.
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