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The consultant asks whether the reinvestment exemption can be claimed by using the proceeds from the sale of their former habitual home to pay off the mortgage of a new habitual home. The DGT confirms that this is possible, provided the new home was acquired within two years before or after the sale.
The exemption is available when funds from the sale of a primary residence are used to settle the mortgage of a new primary residence acquired within two years of the sale.
The tax team reviews your specific situation.
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