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Jul, 2014

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  1. #1

    Default Capital Gains Exemption?

    I bought a property and lived in it for three and a half years. I moved out and rented it out for six years. I moved back in for a further year. Moved out and have been renting up until now.

    I would like to sell the property sometime this year do I need to move back in for a certain period of time to avoid paying Capital Gains tax after the property has been sold?

  2. #2

    Default

    The months you lived there are exempt from CGT if the property was your principle private residence. Because you once lived there the last 36 months are also exempt. You then also qualify for Letting Relief because you initially lived there before letting the property out. You also get to deduct expenses from your gain such as buying and selling costs along with any capital expenditure on the property. After all of that you also have an annual allowance so you will only pay tax on any gain left that is in excess of £11,200. You don't say how long you've owned it but there would have to be quite a gain for you to be liable.

  3. #3
    Join Date
    Jan 2007
    Posts
    2,225

    Default

    I think you mean £10,600. OP, Why did you leave the property, for work ot to work abroad. Regards Peter

  4. #4

    Default

    Sorry I thought it had increased for 2012/13 but I confused that allowance with another.

  5. #5

    Default

    Quote Originally Posted by TaxationPete View Post
    I think you mean £10,600. OP, Why did you leave the property, for work ot to work abroad. Regards Peter
    I moved out of the property to work in a different area.

  6. #6
    Join Date
    Jan 2007
    Posts
    2,225

    Default

    Your are exempt for 4 yeras if away working in the UK and after your return to the property a further 3 years. Letting releif will apply and I doubt there will be and CGT laibility but I need the all the dates at leat the MM/YYYY and vlaue at purchase and expected sale price to tell you for sure. Regards Peter

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