Q We are in the process of selling the house which we have lived in for the past 21 years. We do not have a house to move into immediately, so we intend to rent until we find a house we want to buy. Does this leave us liable for tax on the proceeds of our house sale? DH

A No. The fact that you will not be buying another property straight away makes no difference to your liability to tax. And assuming that you have lived in the house you are selling for all the time you have owned it, there is no tax liability anyway because of what's called private residence relief.

Virginia Wallis

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source: http://www.guardian.co.uk/money/2012/dec/19/selling-house-pay-tax


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