CGT - SECOND PROPERTY

[sallymcdnld@netscape]

I have a second home which I live in during the week for work purposes. I may be working in Europe over the next 12 months and am considering selling this property.

I am also in the process of buying a property in Spain and am wondering if I can avoid capital gains from the sale of my house in the UK with the aim of putting the money against the property abroad.

Sally

[taxman]

Hello
Initial thoughts are that there are a variety of options to potentially avoid CGT in this scenario, depending on the facts.
don't know when you last acquirred one of your residences, but could potentially elect for the one to be sold to be your main residence this exempt from CGT. If this is not possible as you acquired >2 years ago, then could treat your purchase of the spanish property as a residence and elect for your UK house to be sold to be your main residence.
Depending on the circumstances your period working abroad will be classed as deeemed residence for your other UK property (i.e the one not sold).
You would not be able to avoid CGT by being out of the UK for 12months.

There is also the income tax position ( both UK and spanish ) that i would advise you to consider, and national insurance etc from your overseas earnings.
If you need any further help/advice please contact me.
Regards
A Opt