CGT & Stamp Duty on purchase of Second Home to renovate before sale of First Home

CGT & Stamp Duty on purchase of Second Home to renovate before sale of First Home I wish to purchase a second home that will require renovation hence I will keep my first home & still live in it until the second home is refurbished & my first home is then sold. Throughout my first home will remain my primary residence up until the point it is sold whereupon I shall move into the second now refurbished home (which is now my only home). My understanding is: 1) Purchasing a second home will incur extra second home stamp duty charges & I would need to nominate my first home as my primary residence for CGT purposes. 2) No CGT will be due on the eventual sale of my primary residence & that when I have moved into my second home (now my only home) it becomes my primary residence. 3) I would need to nominate my newly moved into home (now my only home) as my primary residence. 4) I have 3 years from the purchase of my second home to sell my first home & claim a rebate of the extra second home stamp duty paid within 12 months of selling my first home.

Hi,

When you purchase a second home you must write to HMRC, to advise that your first property will be your main residence, for Private Residence Relief purposes. You can see guidance here:

Tax when you sell your home

If the Private Residence Relief is 100% of the gain arising from the disposal of your main residence, no Capital Gains Tax is payable and no gain is reported.  

You will need to advise HMRC of the change to your main residence and update your personal tax account, to reflect your new address

Personal tax account: sign in or set up

Guidance on stamp duty can be found here:

Stamp Duty Land Tax

Thank you.

Hi, hope you can help me with CGT question please. I bought a flat jointly with my brother to help him in 2013 for £93k and it was my brothers only sole residence up until he passed away in January 2022. I am now selling the flat for £124.5 k, will I be able to get any CGT relief for the years my brother lived in the flat since purchase in 2013 as it was his only and main residence. Many thanks Robert Long

Hi longini10 Long

No. private residence relief would only apply if you lived in the property.

Thank you

Where do you need to write to in order to nominate which property is your primary residence. This is not clear from the website

Hi mel Soomal,
The address to send this to is:
HM Revenue and Customs,
BX9 1AS.
Thank you.