Selling residential property

[lunar]

If I sell my residential property and decide to reside in a second property I own, am I liable for any taxes.
Also, will I be able to gift the profit from the sale to my children without incurring tax.
Thanks.

[someone]

The chances are that you will have no tax to pay but it's not certain without a lot more information.

Here's a case on sale of residential property where the taxpayer got advice that there was no tax to pay, HMRC decided that there was 600K to pay, and the FTTribunal finally decided that there was 60K to pay. And it took just over 10 years from the sale of the property to the tribunal decision (that I suppose might still be appealed by one side or another)

If you're selling a residential property then you're likely to pay 1-2% in agents fees, another 500+ in solicitors fees. For a few hundred pounds isn't it worth talking to a qualified accountant who will tell you whether your circumstances are simple - and there's definitely no tax due (except possibly IHT if you die within 7 years). They can also advise you of any pitfalls to your scheme that you might not have considered or know about.

[someone]

Forgot the link:
http://www.bailii.org/uk/cases/UKFTT/TC ... 05911.html

[someone]

And the HMRC assessment was 275K, not 600K. I misremembered the chargable gain as the tax due.

[Peter D]

If you genuinely have lived in the property for the entire period of ownership as you home then there will be no CGT on disposal.
Yes you can gift the profit to your children but there may be tax on that if you do not live for seven whole years. Regards Peter