CGT after buying new property before selling old one

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.

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
 

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?

Hi Kathryn8765
That is correct.
Thank you.

 

Thanks very much

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

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 .

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?

Hi,
You can see guidance here:
HS283 Private Residence Relief (2024)
Thank you.

Thank you for your response, however, I do not understand the help sheet. If we buy a new main residence, what is the maximum length of time we have in which to sell the current main residence before we are liable for any capital gains tax? Please spell it out in the very simplest of terms. Thank you.

Hi,
This forum is for general queries only and is intended to help you self-serve. We are unable to provide specific advice tailored to individual circumstances. You may wish to contact our Self Assessment team or consider seeking professional advice.
Self Assessment: general enquiries
Thank you.