Tax on Capital Gains ?

[Monkeyyear]

Please help me understand. I may be buying a house that is £25k-£30k cheaper than my existing house. Would I have to pay capital gains tax?

No. You pay Capital gains if you sell a house (which isn't your principle private residence) for more than you bought it for.

I bought my house (our only home) about 13 year ago. So inevitably its price has gone up quite abit so does every house. ATM we re looking at a house that is about £25k-£30k less than our only home. Just that my ex raised this question so I just want to ask the mumsneters to share their wisdoms and experiences.

Nope no capital gains tax is payable when you sell your only principle private residence that you have never rented out.

Yes, besides I paid stamp duty on this house and I will have to pay stamp duty on my next one. I believe the estate agent would know as it s so common that people down sizing and up sizing all the times.

Yes if the price is over 125k you need to pay stamp duty on the new one. Google "stamp duty calculator" and you can put in your numbers to work out how much that is.

If you live in the house that you sell there is no capital gains tax. When you buy a house (regardless of the cost), there is no capital gains tax, but when you buy there is usually stamp duty. So as long as you’ve lived in the house and not rented it out, there is no capital gains tax to pay.

Yes you will need to pay stamp duty if the house is over the threshold.

No not in this case. You would be liable for cgtax on a gain due to increase in value on same property between acquisition and selling, but only if it was not your principal private residence(rental, holiday home etc) or has not been for last three years. Even then there are also allowances to offset were it to apply.