If there is, what tax do I pay on main home if we sell?

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    If there is, what tax do I pay on main home if we sell?

    Hi all, if we sell our only house ( 1st house ) that we live in and made £300k profit from it, but we use all that profit to buy another home we intend to live in and use some of that profit to renovate. Would we have to pay tax on the profit we earned and also, say for example we lived in our new property for another 2-5 years and made a profit once we sold it to buy another house we also intend to live in, would we also need to pay any taxes? Must state, that we were first time buyers, so we’re new to the property world. Many Thanks
    John

    #2
    You don't pay tax on your main home.
    From the sound of it, there will be some periods when you own two properties and you would have to pay capital gains tax on any increase in value for the period it wasn't your main home.

    The gain is offset by any capital expenditure you incur renovating it and if it's owned by two UK tax payers, you both have an allowance of £12,000 of gain before aby tax is due.

    If you're basically resident in more than one property, you can confirm to HMRC which is your nominated residence for tax purposes.

    If you do buy one property while still owning another one, you'll have to pay some additional SDLT which you can reclaim if you sell your "old" property within 18 months.
    When I post, I am expressing an opinion - feel free to disagree, I have been wrong before.
    Please don't act on my suggestions without checking with a grown-up (ideally some kind of expert).

    Comment


      #3
      Thanks for your reply. Yeah we would potentially only ever owning one property if we went down this route. Just wasn’t sure if a made so much profit one main house, then sold the new one after a few years. Just ain’t/wasn’t sure to go down the btl or buy and flip route from the profit we’ll have from our first home. Thanks again.

      Comment


        #4
        Investing in your own home is one of the most cost and tax-efficient investments there is.
        When I post, I am expressing an opinion - feel free to disagree, I have been wrong before.
        Please don't act on my suggestions without checking with a grown-up (ideally some kind of expert).

        Comment


          #5
          Originally posted by jpkeates View Post
          Investing in your own home is one of the most cost and tax-efficient investments there is.
          Although nobody knows the tax regime 5 years from now.

          Arguably, investing in your own home tax free is the key mechanism which has allowed Londoners to rob the rest of the population (all of the money printing over the past few years went to these folk, far more than to any bankers).

          Comment


            #6
            Originally posted by AndrewDod View Post
            Although nobody knows the tax regime 5 years from now.
            Maybe my "is" should be "is currently".

            It's a reason why letting non-UK nationals buy UK property with no control is a terrible idea.
            All that wealth magicked into being through increased house prices will just vanish offshore instead of paying off other lending here.
            When I post, I am expressing an opinion - feel free to disagree, I have been wrong before.
            Please don't act on my suggestions without checking with a grown-up (ideally some kind of expert).

            Comment

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