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Where Taxpayers and Advisers Meet

Downsizing &PPR

lander
Posts:14
Joined:Wed Mar 22, 2017 1:17 pm
Downsizing &PPR

Postby lander » Thu May 09, 2024 9:37 am

We are having to downsize on retirement.
We own 2 homes:-

1.The family home in Surrey, which we have owned & lived in for>50yrs (de facto -main residence)
2. A 2nd home on the coast, owned since 2015

We have devised a "cunning plan":-

1. Sell our main home in Surrey. No CGT as main residence.

2.Move into our second home on the coast & thereby make it our only & main residence.

3. Sell this & avoid CGT, as it is now our main residence.

Would it be legal/ & tax efficient to do this? Would it work?

pawncob
Posts:5120
Joined:Wed Aug 06, 2008 4:06 pm
Location:West Sussex

Re: Downsizing &PPR

Postby pawncob » Thu May 09, 2024 9:48 am

The CGT on the second sale will be time apportioned, so you'll need to live there for 9 years to reduce the gain by 50% (and pro rata for any other period).
With a pinch of salt take what I say, but don't exceed your RDA


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