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Buachaill, Barrister
Category: Law
Satisfied Customers: 10976
Experience:  Barrister 17 years experience
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In order to avoid substantial capital gains tax we have to

Customer Question

In order to avoid substantial capital gains tax we have to sell a second home during the current tax year (while we are still non-resident). What, however, has to be done within that period? Is it contract or completion?
Submitted: 2 years ago.
Category: Law
Expert:  Buachaill replied 2 years ago.
1. Exchange of contract is the relevant date for the realising of the gain. The answer is found in TCGA 1992 s.28. The date of disposal is the date of exchange, not completion. For conditional contracts, the date of disposal is the date on which it goes unconditional. Be aware that this approach usually favours the Revenue as it means that the date of disposal is in an earlier tax year in many cases. However, I would advise you to have as short a completion period as possible. However, the CGT date is the date of exchange of contracts.