Selling in short space of time and CGT

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    Selling in short space of time and CGT

    Hi,

    I bought my house for £295k in Feb 13 and hope to sell it in Jan 14 for a £380k. The property needed a complete refurb. The house is my main residence. I am aware that there is a minimum 6 month rule, which most banks will not lend on.

    My question is will i be charged CGT as i am selling in a short period of time and the large gain made. My aim is to work my way up the property ladder and be mortgage free in the next 5 years.

    thanks

    #2
    What was your original intention when you bought the property?

    Comment


      #3
      Hi,

      It wasn't my intention to buy and sell in such a short period of time. But I would like to move to a four bed or another 3 bed in a better location.

      Are there any known restrictions on buying and selling in a short period of time.
      Thanks

      Comment


        #4
        As long as the property was your main and sole residence during the period you will not have any CGT to pay

        Comment


          #5
          thanks for your help gents. How would the HMRC find out anyway, unless i told them myself.

          Comment


            #6
            Originally posted by mprop10 View Post
            Hi,

            It wasn't my intention to buy and sell in such a short period of time. But I would like to move to a four bed or another 3 bed in a better location.

            Are there any known restrictions on buying and selling in a short period of time.
            Thanks
            The legislation does not set any minimum time for occupation to become residence - longer is usually better. But the courts have indicated that it is quality rather than quantity that is important.

            So, assuming you have done all the usual things - e.g. bank accounts, mail etc all using this address, not approaching Estate Agents to sell it etc. - you should be OK.

            Have you read HMRC's Help Sheet HS283 on the subject?

            http://www.hmrc.gov.uk/helpsheets/hs283.pdf

            Comment


              #7
              Originally posted by mprop10 View Post
              thanks for your help gents. How would the HMRC find out anyway, unless i told them myself.
              Land Registry? Informant(s)?

              Comment


                #8
                thanks for your replies, How do you mean 'not approaching Estate Agents to sell it etc.'. I would wan to sell via a local estate agent.

                Comment


                  #9
                  Originally posted by mprop10 View Post
                  thanks for your replies, How do you mean 'not approaching Estate Agents to sell it etc.'. I would wan to sell via a local estate agent.
                  The fact that one is trying to sell a property - especially if soon after acquisition - is not normally an indicator that the property is meant to be a long term residence.

                  Comment


                    #10
                    thanks guys, i am getting a mixed response. My last property i occupied for 6 years and i don't intend on buying and selling every year.

                    Comment

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