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Tony Tax
Tony Tax, Tax Consultant
Category: UK Tax
Satisfied Customers: 15658
Experience:  Inc Tax, CGT, Corp Tax, IHT, VAT.
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I own outright 1 property and intend to buy a new home and

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I own outright 1 property and intend to buy a new home and move into it,then sell the first property in the next few months is there a risk I get caught in a capital gains tax situation on the original property which is currently my main residence.

If you have lived in the property you intend to sell for the entire period that you have owned it and you sell it within three years of moving to a new home, then you will not have to pay any Capital Gains Tax on the gain you make from the disposal of the first property. Where a property has been your main home, the last three years of ownership are always treated as a CGT exempt period even if you were not living there.

Take a look at HS283 for detailed guidance on the main residence and Capital Gains Tax.

I hope this helps but let me know if you have any further questions.
Customer: replied 3 years ago.

Thank you,there is one slight detail which I need to clarify,funding for the new property purchase will be partly from a new mortgage and the balance will ultimately be from the proceeds of the sale of my current property.However rather than wait until i sell my current home i intend to get a mortgage on it as a sort of bridging loan,the bank are aware i will be selling the house and have said the cheapest way of doing this is to take out a buy to let mortgage on my home until it is sold even though i have no intention of renting it out.does this change anything.

The financing arrangements don't change my answer.

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