Capital Gains on own home after renting

Hi all I wonder if anyone can advise.

Here is my situation:

Purchased my home in 2005.

Since 2016 I have been renting due to the need to work in another part of the country.

If I was to sell the house , given not been resident in it for 6 years would Capital Gains apply?

Would a solution be to go back and live in the house for a period (how long) before selling ?



Yes it would apply. It would apply to the proportion of time you rented it, although last 9 months are counted as if you lived there, even if it was rented for this time, so there is no benefit in moving back for a short period.

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Thanks Richard

How is the CGT worked out on a home which has been rented for say 6 years in a scenarios such as:

House purchase price 180k

Selling price 280k

House owned on mortgage for 17 years and rented fir 6.


Does it also depend on how long you lived in it compared to how long you rented it out?

Total Gain is 100k

Period of rent would be 5.25 years. 5.25 is approx 31% of total ownership period (i assumed 17 years is period you lived in and rented combined). Chargeable gain is circa £31k. You can use cgt allowance of £12,300 (2 lots if jointly owned) to reduce this and then you pay 18% or 28% on balance.

Thanks for the info much appreciated.

God that tax is outrageous. I only live away from home following redundancy and the need to secure employment meant moving to another part of the country !

that is nothing compared to inheritance tax

Thanks both for your responses.

I have another tax query but will post in separate thread.

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