Capital Gains Liability

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Hi

I have a friend who is in the process of selling his house. Once his house is sold he intends on buying two sites to build two houses. I reckon that this cannot be done without attracting Capital Gains Tax. I think he would have to build one house, live in this for a certain amount of time, sell this and then build the other house. What is the time limit regarding when a home become a maim residence for tax reasons ? :)
 
sorry, i do not know how to include threads in replies...
Have a look at the one i started on 27/06/05 "Avoiding Gain Tax when selling second house" in Property section. May help.
 
I don't get your question. Your friend won't have any CGT on disposal of his house if it is his principal private residence. What he does with the proceeds doesn't matter. If he builds 2 houses and lives in neither he will have CGT on the disposal of both. If he lives in one he will only have CGT on the disposal of the one he isn't living in.
 
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