Capital Gains Tax on Sale of Property

S

Streets

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Hi - we are sale agreed on our house (of which we were owner occupiers) and will make a profit of approx 200k. we are probably going to rent while we wait to buy something at reasonable prices and hopefully house prices will drop as we do so.

We will use the 200k in the following way (very rough figures):
  • 30k for new car (never had a nice new car before!!)
  • 20k to rid of all loans
  • 50k on stamp when we eventually buy
  • 100k on house price
My question is, because we are not buying straight away will the profit made from the sale of our current house be liable to CGT?
 
If you were continuously owner occupiers since you bought the house, no CGT is payable. What you choose to do with the money afterwards isn't relevant.

I've never owned a nice new car either and being a petrolhead I do understand the appeal. But I don't think I ever will buy one. Depreciation on brand new cars is savage. Why don't you look at buying an immaculate 1-year old car from a dealer? You'll still have a warranty and the car should be as good as new - just some poor mug will have taken the initial depreciation hit.
 
If you are going to keep 50k for Stamp Duty it means you intend buying a home for around the 800 k level. I don't think the 100 k you are keeping for the new home purchase will get you there unless you have a War Chest somewhere
 
sorry - i pointed out the figures were very rough. stamp wil be around the 30-35k mark on my range of 600k to 650k for the house. Just wanted to see if i had to pay any CGT if we had a break between selling and buying.
I presume if we do make a break between selling and buying we are not continuos owner occupiers so CGT applies? Am i right or wrong on this? Sorry if i seem confused - this is far from my comfort zone!
 
sorry - just re-read LDFerguson's post. i now realise that CGt wont be applicable. Thanks for your help
 
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