CGT: Principle Residence

[rover]

I bought a property in 1993 which I lived in for 3 years. I then moved into rental accommodation and have let the property I own ever since. I am considering buying another property with my husband and would like to know how I stand wrt CGT if I were to sell my property.

[Yardleystar]

1. No cgt while you lived there as ppr

2. No cgt on last three years of ownership

3. Lettings relief applies to intervening period

[Tax Accountant]

Period from 1993 to 1996 is exempt as your only or main residence. A further 3 years are exempt as final 3 years of ownership. Therefore, you have 6 years exempt and 6 years chargeable. All final gains will be apportioned 50/50. The amount of chargeable gains is further reduced by lettings relief equal to your exempt gains restricted to a maximum of £40,000. Any remaining chargeable gains is reduced by taper relief of 30% and also annual exemption of £8,500.

Therefore, so long as your gains do not exceed approximately £105,000, you will not have any capital gains tax to pay.