House purchase tax and capital gains

[ehuplladie]

I have recently sold my main residence (December 2015) and moved into what was a second home that I had been renting out for the last 3-4 years. This is now my main residence until I find another property which I intend to move into and to then possibly re let my current main residence.

What will the the charge be for purchasing what will become my main home and what will the capital gain be if I sold my existing main residence rather than letting it' after purchasing my new home.

[Lee Young]

You will pay the extra 3% SDLT on the purchase (as you will own more than one property), but if you do this within 18 months of the sale of your former main residence then you should be able to claim the extra 3% back (assuming today's Budget did not change that, and I don't think it did!).

You will get some main residence relief on the sale of the current main residence - the last 18 months, and lettings relief will also apply. Whether there is a tax bill will depend on the figures of course.