CGT Status when you sell your primary residence and move into a second home

I have a second home which I am thinking of moving to full-time. When/if I sell my main residence, will I be exempt from CGT even though I've already purchased the house I'll live in? The primary residence was bought in 2003, and the second home was bought in 2013. I may buy a flat with the proceeds of the sale of the primary residence, which will then serve as the new second home, and what is currently my second home - will become my primary residence. Thanks

Hi,

When you acquired your second property, you should have confirmed within 2 years which property is to be treated as the main residence for Private Residence Relief purposes. You can see guidance here:
  
CG64495 - Private residence relief: only or main residence: two or more residences: time limit for nominating

Where no nomination is made, relief will be available in respect of the residence which is the main residence as a matter of fact; the deemed residence is not automatically relieved. Yoiu can see the guidance here:

CG64545 - Private residence relief: two or more residences: no valid notice made

Private Residence relief, where it is due, is used to reduce the capital gain arsising from the property disposal. Guidance on Private Residence Rrelief can be found here:

HS283 Private Residence Relief (2024)

There is a capital gains tax liablity calculator below from which you can elect to register for a capital gains account and report and pay any Capital Gains Tax due.

Tax when you sell property

Thank you.

Hello, I sold my previous primary residence in April 2024. I then moved to another residence as my primary home. i have had a second home since October 2005 and have lived there part of the time since then. I am now considering nominating this second home as my primary residence as it may prove better for my needs in my later years. It has increased in value since 2005 and so I shall have to pay Capital Gains Tax. When do I need to pay capital gains tax? In the immediate future if I nominate it as my primary residence? Or when it is eventually sold? Kind regards, Charles

Hi,
You would have to dispose of the property first.  
Only after the disposal can a capital gains laibility be calculated.
There is a calculator at Tax when you sell property, to help work out your gain.  
It leads on to the online capital gains service, where you can report and pay any tax due, within 60 days of the completion date.
Thank you.

Hello HMRC Admin (20 Response), Thank you for the information that CGT is not payable until the second property is sold, even though it has been nominated as the primary residence before the sale. That is much appreciated and most helpful. Will the CGT payable be deducted from the value of my estate if the property is sold after my demise? Kind regards, Charles

Hi,
Based on current legislation, no.
Thank you.

Selling my main property which has been let, because of ill health. Now living in a property l have NO claim to what do l have to pay for tax on the property that was my main property

Hi,
As you have not lived in the property for the whole period of ownership, capital gains may be be due. You can see guidance here:
Capital Gains Tax: what you pay it on, rates and allowances
Thank you.