scoobyster

Hi All

Sorry, another boring tax question.

I have lived in my only property for 2 and a bit years, now plan to live in rented accom elsewhere and let my house to a friend. If I sell the property at the end of the let - how long can the let be to avoid paying CGT? If I left it too long, how long would I have to live in the place again to cancel out the CGT?

TIA

Ben

TopBanana

3 years I believe

scoobyster

I take it you mean I can be away for 3 years rather than I'd have to come back for 3 years. If so that's plenty, thanks.

Tentenths

TB is quite right.

Provided that the property has previously been your "main residence", the last three years of ownership are treated as qualifying for the exemption, whether you live in the property or not.

Tentenths

Up to three years from the point you cease to live in the property.

scoobyster

Cheers

Out of interest, if I left it nearly 3 years - how long would I then have to move back in for in order to get my 3 year allowance back to restart the cycle?

Tentenths

Ben,

This *may* be a little more complex than I first thought (possible implications of letting the property). I'll have to check Tolleys (one of our tax "bibles") tomorrow and will report back. But, even then, you may need to seek expert advice from an accountant with specialist CGT knowledge to be safe.

scoobyster

Thanks TT. Don't go to any trouble if you mean the 'restarting the cycle' is complex - I was just wondering about that bit really, I'll more than likely be back or selling before 3yrs are up. I appeciate your advice anyway.

TopBanana

scoobyster - I don't believe there's a hard-and-fast rule for how long you need to move back in. I've heard of people living there for 6 months. If you choose not to move back in though, there's some sort of tapering system so you don't have to pay loads.

Besides, how much are you expecting property to appreciate in the next three years?