If the writer moves back into the rented property and then sells the other property, will they have to pay capital gains tax on the 100k equity? | Lawhive - Solicitors & Lawyers Online
If the writer moves back into the rented property and then sells the other property, will they have to pay capital gains tax on the 100k equity?
Hi, I own a property that I lived in for two years and the rented for around 10, during that time I rented for about 3 years and then purchased a second property that I have lived in for around 7. I have around 100k equity in both properties. I didn’t know a thing about capital gains tax and I understand if I was to see the rented property I would need to pay it My question is if I move back to the rented property and sell the house that only I have lived in do I have to pay any tax on the equity of 100k or do I get to keep it all (after selling fees) And secondly if I live in the rented property again is there any time frame which the capital gains tax then expires and I wouldn’t have to pay anything if I then sold that house? I’m thinking to save around 25k of tax I move back to the rented property and sell what I have been living in. Any advice greatly received.

Bryan Madigan

24th April 2022

Top Answer
Tax Adviser. If you sell the property that has been your home since you bought it there will be no CGT.

Cary Brown

24th April 2022

Tax Adviser. If you move in to the first-bought property and live there for a while, any subsequent gain will be restricted by the time you have lived there. (Number of month you lived there when you bought + number of months you live there the second time) / Total months of ownership.

Cary Brown

24th April 2022

Tax Adviser. The level of equity is irrelevant, the gain is calculated on the difference between the sale price and the purchase price.

Cary Brown

24th April 2022

This page contains user-generated content and is provided for general informational use only. Unless otherwise indicated, answers are provided by non-qualified (NQ) lay members of the public. Please read our Terms for more information.

If you have feedback on this question please contact support@lawhive.co.uk

Get legal help the hassle-free way

We have expert solicitors ready to resolve any type of legal issue in the UK.

Remove the uncertainty and hassle by letting our solicitors do the heavy lifting for you.

Get Legal Help

Takes less than 5 mins