CGT after paying CAT on inherited house and making it your private personal residence

[ocd dad]

Looking for a bit of advice to following scenario.

Inherit an old run down cottage from aunt.
Pay the CAT on value of house after allowance for inheritance tax threshold.
Over the following year or so, get bridging loan on your current mortgage free PPR so you can refurbish inherited cottage.
Then sell current PPR and move into refurbished inherited cottage.
Questions:
1.) is the person exempt from CGT tax on sale of original PPR
2.) Does the refurbished inherited cottage then become your new PPR and if for whatever reason in the future the person decides to sell and move elsewhere, will CGT have to be paid on the sale of it.

Thanks in advance

 

[jpd]

1) Yes, you get relief from CGT for the period in which the property was your PPR, so in this scenario, no tax would be due
2) If the refurbished property becomes your PPR, then yes you get CGT relief yet again. If the refurbishment takes longer than 12 months, then you might not get full relief

 

[ocd dad]

1) Yes, you get relief from CGT for the period in which the property was your PPR, so in this scenario, no tax would be due
2) If the refurbished property becomes your PPR, then yes you get CGT relief yet again. If the refurbishment takes longer than 12 months, then you might not get full relief

Cheers for your reply. I would imagine the refurbishment and sale of 1st house could take more than 12 months from time probate is secured.
As applying for and getting planning permission then the actual building onto it and refurbishment itself could take longer before you could actually move in and make your PPR