This site uses cookies. By continuing to browse the site you are agreeing to our use of cookies. To find out more about cookies on this website and how to delete cookies, see our Cookie Policy.
Analytics

Tools which collect anonymous data to enable us to see how visitors use our site and how it performs. We use this to improve our products, services and user experience.

Essential

Tools that enable essential services and functionality, including identity verification, service continuity and site security.

Where Taxpayers and Advisers Meet

Selling main home and moving into second home

Tingly
Posts:34
Joined:Fri Mar 17, 2017 12:12 am
Selling main home and moving into second home

Postby Tingly » Wed Nov 17, 2021 10:42 am

Selling first hime...moving into second home
by Tingly » Tue Nov 16, 2021 8:03 pm

Good morning

Have posted in another section, but no replies as yet so thought it may be relevant here.

I have lived in my residential property for 40 years, am not quite ready to downsize yet, but thought about buying somewhere smaller and on one level now to use as a weekend place, in order to gradually get used to a different location/smaller place etc.

I know i will pay extra stamp duty on the new small home but am worried about what other taxes i might incur when it comes to selling my current home when i can no longer manage it.

Is it wise to buy now or am i falling into a trap somehow?

Any thoughts will be welcome.
Thankyou

maths
Posts:8507
Joined:Wed Aug 06, 2008 3:25 pm

Re: Selling main home and moving into second home

Postby maths » Sun Nov 21, 2021 9:33 pm

As you say you'll have to pay an extra 3%SDLT on buying the downsized home but can reclaim if you sell current property within 3 years thereafter.

There may be a small amount of CGT on sale of current home but, as its been your only home for so long, any charge will be minimal.


Return to “Capital Gains Tax, CGT”