Buying the family home – how long does it take to pay? [health reasons] [downsizing]

Q:Dear All,

This is my first post so please bear with me. Also, I'm not sure whether or not this should be in the Tax section.

Due to my mother is selling the family home and to something smaller. I have agreed to buy her old house for a fair market value but will only be able to transfer funds when I sell my own house. I should mention at this point that my mother has already bought and paid for her new place.

My concern is that it could take a long time to sell my house (in current climate). Would there be capital gains tax implications due to one of us having two houses at the same time ? Does anybody know if there are any concessions that allow a relative to take a certain length of time in order to pay for a property that is moving within the family ?

Hope I've made myself clear – any advice appreciated !!!


A:I think it's 3 years your mother has to sell the property without any CGT liability. That's nothing to do with you being related, just the period of time a house is not a persons main residence before it becomes liable for CGT. Hopefully you'll have bought it by then … and obviously sold your current one at the same time

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