Section 54F exemption on reinvestment

This discussion explores the implications of reinvesting Section 54F exemption proceeds into a second residential property. The consensus is that if the first property purchased with the exemption is sold within three years, the original tax exemption is likely to be withdrawn. This means the capital gains from the initial sale would become taxable in the year the first new house was sold, regardless of any subsequent investment in another property. Professional advice is recommended for specific circumstances.