Selling first home after buying second.

[Opensource]

I purchased property A in Jul 1999 for £72k and lived there until Apr 2002.

I bought a second property B which I now reside in (from Apr 2004).

Unfortunately the sale of propery A has just fallen through (sale price £220k) and I am worried about capital gains tax implications if I decide to rent it and then sell it sometime in the future.

Am I liable for CGT on A if I sell it within the next year or so (even if I have rented it out in that time) ?

[moonshine]

DonÂ’t worry itÂ’s unlikely youÂ’ll end up with a CGT bill. First and foremost the last 36 months of ownership are always exempt from CGT. There are likely to be other reliefs if, perish the thought, you donÂ’t manage to sell in this time

thetaxmonkey@hotmail.com

[Opensource]

Thanks for the reply.

Is there anything (IR doc) that I can refer to that will confirm this ?

[ian.wright@beechams.]

Here is a link to the Inland Revenue pages relating to letting your home.

http://www.inlandrevenue.gov.uk/pdfs/ir87.htm

I hope this helps.