Consolidating Sale of Two Houses

As my parents are elderly and I am currently caring for them at home, I am considering selling my own house and my parents house and purchasing a home more suitable to our needs at the moment. I have a mortgage on my own house with no equity and expect if I succeed in selling, I'll only get the original purchase price back. My parents house is in my name but it is their principle residence. My question is if we succeed in selling both properties and purchase a new house which will become the principle residence for all of us. (Myself and two senior citizens with lifetime rights) Will I be subject to
a) Capital Gains Tax on the proceeds of both sales.
b) Stamp Duty on the purchase of the new property.
c) Or any other taxes

Novic said:

As my parents are elderly and I am currently caring for them at home, I am considering selling my own house and my parents house and purchasing a home more suitable to our needs at the moment. I have a mortgage on my own house with no equity and expect if I succeed in selling, I'll only get the original purchase price back. My parents house is in my name but it is their principle residence. My question is if we succeed in selling both properties and purchase a new house which will become the principle residence for all of us. (Myself and two senior citizens with lifetime rights) Will I be subject to
a) Capital Gains Tax on the proceeds of both sales.

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If you stand to make no profit on the house you bought yoursef you'll be liable for no CGT on that and as the house you live in with your folks is your PPR you can't be taxed on any capital appreciation on that so given your assumptions-no CGT liability.

Novic said:

a) Capital Gains Tax on the proceeds of both sales.

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no CGT on your PPR.
Now, on YOUR property that is used by your parents as PPR, you may have to pay CGT (open to correction as i am no expert on the matter)

Novic said:

b) Stamp Duty on the purchase of the new property.

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It depends. Same rules would apply to you as anybody else buying a property. See [broken link removed]for details

Thank you both for your advice. I suppose my main concern is that if there is any surplus left over after the purchase of our new home it'll be subject to CGT. I may need this money in the future to pay medical expenses and respite. Is there some clause that provides exemption as the house that will yield a profit is currently the PPR of my parents and obviously the new home will also be their PPR.

Surely the OP's PPR is the house she lives in with her folks. She owns it and lives in it-it's her PPR, no?

The other house she bought herself is not her PPR as she doesn't live in it. Is it rented out OP?

To clarify, did you ever live in this house you bought OP? Have you been living in the house with your folks more than 12 months?

At present my ppr is my own house even though I have not been living there for almost 6 months, but prior to that I did live there. It is not rented out. Purely for practical reasons it is necessary for me to stay in my folk's home and this will continue to be the case for a considerable length of time.

Novic said:

At present my ppr is my own house even though I have not been living there for almost 6 months, but prior to that I did live there. It is not rented out. Purely for practical reasons it is necessary for me to stay in my folk's home and this will continue to be the case for a considerable length of time.

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And are you the owner of your folks place? If so, how did you acquire it?

Yes, it was gifted to me. No outstanding tax issues on the transfer.

Novic said:

Yes, it was gifted to me. No outstanding tax issues on the transfer.

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In that case it is or could be your PPR and you just need to make sure you aren't claiming any PPR related benefits on the house you bought (TRS?) as revenue could/would then inform you that that house was your PPR (you left it less than 12 months ago so could still be considered PPR for ta purposes) and not the house you actually live in and then look for CGT off you. Once you cease receiving any and all PPR related benefits (like TRS) then revenue can't claim it's your PPR anymore IMO.

When did you buy that house? Did you avail of first time buyer status to avoid paying stamp duty?

I don't really feel qualified or knowledgable enough to advise you with certainty but I believe you can avoid any CGT. I was concerned that you might have been liable for gift tax but you are sure you are square with revenue on that score, so fair enough, but the stamp duty clawback might be an issue. Someone who knows more than me will be along to clear it up I'm sure.