How Long Must You Live Somewhere Before It Is Considered Your....

[ToraToraTora]

.....main residence for capital gains purposes?

[Zacs-Master]

Don't think there's a time limit Tora, the Govt website just says 'You must have lived in your home as your only or main residence at some point while you owned it.'

[ToraToraTora]

right so if I lived in it 10 years ago but now it is let, can i sell it without incurring CGT?

[Zacs-Master]

It would appear so.

[THECORBYLOON]

The same site says,

"You don’t pay Capital Gains Tax when you sell (or ‘dispose of’) your home if all of the following apply:

you have one home and you’ve lived in it as your main home for all the time you’ve owned it

you haven’t let part of it out - this doesn’t include having a single lodger

you haven’t used part of it for business only
the grounds, including all buildings, are less than 5,000 square metres (just over an acre) in total

you didn’t buy it just to make a gain

You don’t need to do anything. You’ll automatically get a tax relief called Private Residence Relief.

If you don’t meet all these criteria you may have to pay some Capital Gains Tax.

[ToraToraTora]

ok so I haven't lived in it the whole time. OK I found that site, doing some more research.

[Old_Geezer]

Do tell us what you find and feel sure of.

[Peter Pedant]

If it is your only home / house then one day
but the capital gain on selling this early will be nil

If you are married only one house can be counted as home for both and whichever one it is should be deemed formally in a letter to the taxman within 24 m

If you have moved out and let it then it is your first home up to the day your have let it - thereafter it will be subject to CGT - so a valuation on the day of move would be useful ( can be secured retrospectively ) and the gain from that date used in computation

first £11 000 exempt from CGT
and I think there is no charge for the first three years

it is somewhere on the govt site
the solicitor selling the house is obliged to inform the tax man of all large transactions ( ie all nowadays )

[Peter Pedant]

there is this bit

https://www.gov.uk/tax-sell-property/work-out-your-gain

start here
https://www.gov.uk/tax-sell-home

it is roughly as I said

[Peter Pedant]

this is what the taxman uses himself

https://www.gov.uk/government/collections/capital-gains-tax-hmrc-manuals

andif you crawl thro them
at the end you will know an AWFUL lot about CGT

[Peter Pedant]

from what you said
this calculation covers exactly what your position is

you DON'T need a historical valuation
all values are historical on the day rather than what it would be worth now

[Peter Pedant]

the calcuation here
https://www.gov.uk/tax-sell-home/let-out-part-of-home
sozza

[Peter Pedant]

suitable calculation here
https://www.gov.uk/hmrc-internal-manuals/capital-gains-manual/cg64930