Tax Implications When Selling my Home


Postby amazon123 » Tue Oct 24, 2017 10:22 am

I'm looking for advice on any tax implications from selling my house. It is the only house I own, but I bought it with the aim of renovating, living in it for a short time and then selling on to buy another renovation project. This is partly because I enjoy the process, but also partly because it's a good way of moving up the property ladder.

As far as I'm aware, you don't pay capital gains on your home if it is the only house you own, even if you live elsewhere during a renovation period of up to one year. This is the case and I will be selling the finished property around 18 months to two years after buying it. The thing which makes me slightly wary is the caveat (stated on the gov.uk website in relation to capital gains) which says you are exempt from paying capital gains tax on the sale of your only house as long as you "didn’t buy it just to make a gain." How on earth could they prove that this was the case? There is no mention of frequency of purchases and sales, nor any mention of the length of time in between sales which could make it seem like a house had been bought simply to make a profit.

Any clarification would be very welcome.
amazon123
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