Section 54.capital gain

This discussion explores eligibility for Section 54 capital gains exemption. The client sold a site and intends to purchase two new residential houses using the proceeds. Key considerations include whether owning two existing houses and acquiring two more impacts eligibility, and if the exemption can be claimed for the first time. The rules under Section 54(1) suggest exemption is possible if the capital gain is under £2 million and the new properties are purchased within the specified timeframe, provided this is the client's first time utilising this exemption.