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TaxRobin
TaxRobin, Tax Consultant
Category: Tax
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Experience:  International tax
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My query is I own a 2 homes, one is a family home and the

Resolved Question:

my query is I own a 2 homes, one is a family home and the other is a rental (that i dont make any money on). I wish to sell the family home and move into the rental property, do i pay capital gains tax on the family home?
Submitted: 1 year ago.
Category: Tax
Expert:  TaxRobin replied 1 year ago.

Hello

Because of Private Residence Relief, Capital Gains Tax is avoided on most home sales.

You don’t pay Capital Gains Tax when you sell (or ‘dispose of’) your home if all of the following apply:

  • you have one home and you’ve lived in it as your main home for all the time you’ve owned it
  • you haven’t let part of it out - this doesn’t include having a single lodger
  • you haven’t used part of it for business only
  • the grounds, including all buildings, are less than 5,000 square metres (just over an acre) in total
  • you didn’t buy it just to make a gain

You don’t need to do anything. You’ll automatically get a tax relief called Private Residence Relief.

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Customer: replied 1 year ago.
The family home has increased in value since we bought it 12 years ago, so we still wouldn't pay have to pay capital gains tax?
Expert:  TaxRobin replied 1 year ago.

Even if it increased in value , the Private Residence Relief applies.

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