side garden house

Hi, Am looking for confirmation. When I enquired about a recently built house on the side garden of an end house, I was told that the owners of the original house were moving into the new house and selling their own The reason was to avoid capital gains tax .Apparently, if they sold the new house ,they would be charged Capital Gains Tax. I was told that this is the way it is done. Is this so?.

In general, yes - there is no Capital Gains Tax when you sell your PPR (personal private residence).

Hi Rainy Day, I guess that I did not make myself understood in my query. I do know that stamp duty is not payable on sale of one's own property. When a householder gets a house built along side lhis own, I assumed that he would then sell the new house. So I inquired from a worker on a particular site if the owner was going to sell in the near future so that I could approach them to make a bid for the new one. I was told that if that approach was followed the owner would be liable to CGT on the sale of the new house. Consequently, I was told that what happens is that the owner moves into the house he builds and sells his old house ,thereby avoiding CGT.

Consequently, I was told that what happens is that the owner moves into the house he builds and sells his old house ,thereby avoiding CGT.[/

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Yes he avoids paying CGT but if he sold the new house instead the new purchasers would not have to pay stamp duty?