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taxadvisor.uk
taxadvisor.uk, Chartered Certified Accountant
Category: Tax
Satisfied Customers: 4973
Experience:  FCCA - over 35 years experience as a qualified accountant (UK based Practitioner)
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Madam I am in the process of selling my property

Resolved Question:

Dear Sir/Madam
I am in the process of selling my property in Tunbridge Wells and hoping to relocate to Devon. The property in Devon is not built yet and I would like to buy a small property for the interim period and to use this smaller property for holiday rentals later. Can you please advise me if I will have to pay capital gains tax by doing this? or alternatively is it better to rent?
Many thanks
Christine Day (Mrs.)
Submitted: 1 year ago.
Category: Tax
Expert:  taxadvisor.uk replied 1 year ago.
Thank you for your question.The smaller property you propose to buy in the interim period would be deemed your main residence until such time you move out of it to your new build home. This period and the final 18 months of ownership would be exempt from CGT.After that period, the property would be treated as a second home for CGT purposes and gain would be chargeable to CGT. There is merit in moving into the smaller property and making it your home albeit for a short while.You will find information on private residence relief on HS283 helpful .. the link is herehttps://www.gov.uk/government/publications/private-residence-relief-hs283-self-assessment-helpsheet/hs283-private-residence-relief-2016 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.
Customer: replied 1 year ago.
Many thanks, ***** *****
Chris Day
Expert:  taxadvisor.uk replied 1 year ago.
Thank you for your reply.If you are happy and there are no more issues I will appreciate if you would kindly rate my service/accept the service I have provided to ensure I get credited for it by Just Answer.
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Expert:  taxadvisor.uk replied 1 year ago.
I thank you for accepting my answer. Best wishes
Expert:  taxadvisor.uk replied 1 year ago.
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