CGT

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Are there any whizz kids on the forum? I would like to know, if you sell your primary residence and then live in a property which has been rented out, how long before it becomes your primary residence and won't incur CGT?
 
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As I understand it you may have to pay capital gains tax when you sell the house you have moved out off as the house you go to becomes you primary residence as soon as you move.
 
Surely the rented property only becomes your main residence once you have moved into it in which case the one you have just sold was your main residence and not liable to CGT?

Really, you should be speaking to an expert on this matter. Any of our cheating MP's should be able to advise you on that question. :whistle:

Edit: Ah, I see. Do you own the property that was rented out as that may have some bearing.
 
I think you have to keep the property for 12 -18 months to avoid CGT but I'm not certain.
 
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From experience quite a few years ago, I sold my primary residence, went on an extended holiday, rented somewhere when I returned, and maybe two years later bought my next house.
I do not think that there is any CGT on selling your primary house because you may be buying your next one in x number of years time.
 
Whether or not its is your main residence can be judged on the quality not quantity of you residential use. It is not just about how long you call it your home.

How long will you have already owned the rented house before moving in?

CGT will be calculated based upon the proportion of time that it was (i) not you main residence (PPR), and (ii) the proportion that was; there are some further reliefs available to reduce the gain/tax.


See here: https://www.gov.uk/tax-sell-home/let-out-part-of-home
 
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