Do I need to pay Capital Gains Tax?

[hkp57]

Looking for property tax advice for this scenario.

Purchased house #1 in the year 2000 and lived there until Aug 2013

Purchased House #2 in Aug 2013 and moved in to this house.

House #1 our daughter lives there now since Aug 2013 (Rent Free)

Our plan is to sell House #2 and for my wife and I to relocate to Spain.

Daughter will remain in House #1 until she is in a position to buy it in a couple of years time.

Would I be liable to pay tax on the sale of House #2? We are in Scotland if that makes any difference!

[Eric Mc]

Yes, you will be liable to CGT on the sale of the original house but the gain will be apportioned to only cover that period of the property's owneship ownership when it wasn't your main residence.

At the moment, being in Scotland makes no difference to Capital Gains Tax - although that may change in the future.

[craig1912]

Is the OP not asking if CGT is due on house #2?
Isn’t the answer therefore no?

[Eric Mc]

Yep - my mistake.

House No. 2 has always been a main residence for the OP so is CGT exempt.

If and when House No.1 is ever sold, there will be CGT.

[hkp57]

Eric Mc said:

Yep - my mistake.

House No. 2 has always been a main residence for the OP so is CGT exempt.

If and when House No.1 is ever sold, there will be CGT.

Thanks for the input, will this be the case even selling it to a family member? Somebody had suggested this to be the case.

[Eric Mc]

hkp57 said:

Eric Mc said:

Yep - my mistake.

House No. 2 has always been a main residence for the OP so is CGT exempt.

If and when House No.1 is ever sold, there will be CGT.

Thanks for the input, will this be the case even selling it to a family member? Somebody had suggested this to be the case.

Yes - family connects have no impact on Capital Gains Tax. A sale is a sale.