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Posted Thu, 10 Oct 2024 17:41:53 GMT by Kathryn8765
Hi, Please can you clarify the following. We bought our current house 30+ years ago and it has obviously increased substantially in value since then. If we buy a new house and do not sell the current one immediately but wait until we have done some repairs in order to sell it, what are the CGT implications? Is there a time limit in which we would have to sell the current house ? I have seen some mention of 9 months being the maximum allowed. Thank you.
Posted Wed, 16 Oct 2024 14:10:17 GMT by HMRC Admin 33
Hi,
Please see HS283 Private Residence Relief (2023).
Please note you will receive PRR for the period you lived in the property plus the final 9 months.
If you actually live in the property in any of the final 9 months this is already included as part of the initial PRR and you cannot claim it again.
Thank you
 
Posted Fri, 25 Oct 2024 14:38:50 GMT by Kathryn8765
Hi, Thank you for your response, I understand the first part so that's a start but I am afraid I need it spelling out very clearly and get very lost on the HMRC help pages, so just to confirm, if I sell my current house within 9 months of buying the new one, I will not be liable for any CGT and I do not need to report this anywhere on any tax return or anything?
Posted Fri, 01 Nov 2024 12:10:21 GMT by HMRC Admin 21 Response
Hi Kathryn8765
That is correct.
Thank you.

 
Posted Sun, 10 Nov 2024 12:13:01 GMT by Kathryn8765
Thanks very much
Posted Thu, 14 Nov 2024 17:51:03 GMT by Kathryn8765
Hi, In the following scenario, how do I know how much CGT I would have to pay? Current house bought in 1993 for 69.5k, sole residence for all this time, now valued at 400k, an increase in value of 330.5k over 30+ years. Buy new house and put current house on market very soon afterwards, after making some repairs, doesn't sell immediately or sale falls through and actually sells after the 9 month deadline has passed. Surely we wouldn't have to pay tax on 330.5k? Thanks
Posted Mon, 18 Nov 2024 14:36:37 GMT by HMRC Admin 17 Response

Hi ,
Have a look at helpsheet HS283

(: HS283 Private Residence Relief (2024)  ) . 

If this property was your main residence for the entire period of ownership, then private residence relief will cover

all of the gain and no tax is payable .

Thank you .
Posted Thu, 21 Nov 2024 12:44:53 GMT by Kathryn8765
Thank you for coming back to me. That makes sense however, what is the 9 month period mentioned above all about? I've now found mention of 24 months on the helpsheet so now I am very confused indeed, sorry. In the scenario above, where we buy a new house which will be our permanent residence, then sell our current house, which has been our permanent residence since we bought it 30+ years ago, a few months later after making some repairs, are there any restrictions on how long the gap can be beyween the two?

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