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TonyTax, Tax Consultant
Category: Tax
Satisfied Customers: 15975
Experience:  Inc Tax, CGT, Corp Tax, IHT, VAT.
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The sale of my house completed on 13th November 2014. The

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The sale of my house completed on 13th November 2014.
The proceeds are in the bank whilst I look for a new home.
So far I have been unsuccessful in finding a property to purchase.
Will I become liable for Capital Gains Tax ( or any other tax / penalty ) if I don't find a property soon ?
Also I am in receipt of Child Tax Credit for my 2 children aged 17 ( DOB 26.06.97 ) and 15 (DOB 11.05.99 )
Is my claim affected by my property proceeds being in the bank even though the proceeds are going to be used to buy another home ?
I am a permanent UK resident.
Thank you
Thank you


Provided that the property you sold was your only or main home for the entire period of ownership plus a maximum of 18 months after you moved out if you did actually move out, then you will have no CGT to pay. It is not a requirement that you buy another property to live in.

The money you have in the bank pending another property purchase will not count as income for tax credit purposes. If it earns any interest, that interest will count as income for tax credit purposes but you are allowed to discount the first £300 of unearned income for tax credit purposes. Take a look here for information on what counts as income for tax credit purposes.

I hope this helps but let me know if you have any further questions.

Customer: replied 3 years ago.

The property was my only home and I did move out on completion day.

I'm unsure what the 18 months means ?

Thank you

If, for example, you find a new home to buy but you have trouble selling the one you currently live in, you can move home and, so long as you sell the old home within 18 months of moving out, you will have no CGT to pay. That isn't going to be a problem for you as you have sold your home and are currently looking for another.
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