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Hi, Sam here , one of the UK tax Experts here on Just Answer, thank you for your question and I shall reply shortly
Thanks for your patience
Could you advsie me
When did you move out from this family home that was to be sold (hat you have now inherited the other half from your husband)
AS this will determine whether there is anything at to pay on its sale
When do you plan to move into the new build
Then if you sell within the next 12 months then you will have no capital gains as for all individuals - the time they lived there AND the last 18 months of ownership are fully covered by the private residence relief rules - so you can proceed with this sale and unless its after Oct 2018 then nothing to report to HMRC (even if you are then living and have full ownership of the new build)
And the half you inherited also falls within these rules, and also there would also be no Inheritance tax to pay on your Inheriting your late husbands share - so no need for you yo have any concerns about this sale even with the change of circumstance
IF it had not half been in your name and you had inherited it after you had moved out, then there would be a small capital gain position to consider but as husband and wife you are both treated as having owned 100% of the property for the whole period.
Let me know if you require any further assistance or clarification
Thanks for your further question - that is slightly more complicated as you would never have lived here but if you sell as soon as its completed I would assume there would be very little gain made between the sale price and the purchase price- and its that figure that a gain is based on.
And as the first £11,300 is exempt - then you may have no gain to declare.
If you decided to keep the new build and rent it out - then clearly the value of the propriety would increase and therefore the capital gain would also increase and if you never live here then this will also be a capital gain consideration
However if you move in only short term (or long term) to make it your main residence and then sell, make sure all aspects of you life are conducted there for the whole period such as utility bills, bank dentists, doctors, tax office etc etc as this address held and then you will be due private residence relief for the time you lived there and then up to a furtehr 18 months of ownership and IF after you have lived there you then let it out - you then qualify also for private lettings relief which furtehr reduces any gain
Also note if you decide to let out the family home and then sell after 18 months of this being your main residence then again you get private residence relief for the time you lived there and the last 18 months of ownership and also private lettings relief, so this allows you to have choices here
Yes as advised above you have 18 months to sell the family home before any capital gain would arise so you can rent it out. or leave it empty so as you moved out 6 months ago you have a year left
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Well I hope to have alleviated that worry from a tax perspective.