CGT when selling home

[maggiethecat]

I know that you are exempt from paying CGT if you sell your residence. But what happens if you have moved out and are renting somewhere else - are there any time limits or other restrictions on exemption if you do sell your home?

The gain attributable to the period you lived there is exempt from CGT as are the last 3 years of ownership even if you live elsewhere. There is also an exemption of up to £40k for "Lettings Relief" for a house that was once your PPR for the period you let it (or up to £80k if it was joint PPR and is jointly owned).

You need to work though time apportionments of the gain to work out if there would be any CGT to pay on sale or not.

Did not even know about lettings relief. Are there any links that you can direct me to so that I can have a look at what elements of PPR and LR might apply to our circumstances?

Many thanks Badger.

If you go to HMRC's website and search for Helpsheet 283 then that explains in detail about all of the different PPR elements.

There is a simplified version here www.hmrc.gov.uk/cgt/property/sell-own-home.htm

Lettings relief only applies if you are letting your former PPR, it's not to do with you renting elsewhere - I can't quite work out from your OP what your exact position is.

Happy to help if there's anything that doesn't make sense on the link/help sheet if you want to set out the full details & relevant dates & figures.

If you live away from your private residence due to work you can also get relief that way. For example if you are a member of the armed forces and posted the other side of the country or overseas you can still claim the house was your private residence and therefore no CGT is payable. This is also applicable to the spouse.