Pensioner Selling House

roker

Registered User
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A friend who is a pensioner is thinking of selling his house. Due to his age he may not buy another house. Is this capital free from tax CGT? and will this money be taken into account for pensions if means tested?
 
If the house he is selling was his Primary Dwelling House (i.e. his home) for as long as he owned it, there will be no Capital Gains Tax on the sale proceeds.

However, if he holds the proceeds in cash, the cash will be assessable for any Means Test and so might disqualify him for any means tested benefits, depending on the amount. Your home doesn't generally count in means tests but cash or investments do.

Liam D. Ferguson
www.ferga.com
 
Generally if you sell your house the first 190,500 of the sale proceeds is ignored for means tested pension. See here