How long do you have to live in a previously rented out house to avoid capital gains tax?

[Twiglett]

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I asked my accountant this question a few years ago & his answer was 'as long as you can.' I think the main thing is the IR believing it was your main home for long enough and not just to avoid CGT. If she's owned it for under three years I don't think there is any CGT but maybe someone else can confirm.

Twiglett - i'm pretty sure that if she had never lived in the rented house and then sold it, she would have to pay CGT on a sliding scale dependent on how long she has owned it. If she is selling her main home and moving in to the rented one, this will then be her main home so when she comes to sell it there will be no CGT.

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if there is a minimum time then it'll be 2 years but i'm pretty certain that's only if it's not your main residence. My situation is I have a falt that I lived in for about 18 months which I now rent out. My main residence is the house I now live in. If I want to sell my flat and have no CGT, then I would have to 'move' back in for around 6 months. i don't have to physically live in it but all my post, bills etc, would have to be registered there plus council tax etc. I think i'd be liable to CGT because I have another home, i.e the one I live in now. Basically, if she lives in the previously rented one and it is her only home then I think she won't be liable. Hope that makes some sense.

soory, if that's confusing. I'd be liable to a small amout of CGT on my flat if I sell it without having lived in it for a total of 2 years (it doesn't have to be concurrent though)

Depends on long she rented it out compared to how long she has owned - also depends on how much profit she has made - if she has owned it less than three years by the time she comes to sell there is no CGT as there is an exemption for the gain relationg to the last three years of ownership (on a pro rata basis)of a property that was ever your main residence. If she has owned it for longer and is looking at a substantial profit tell her to get some advice. If the profit is not substantial then it is possible that she may have no CGT to pay at all - THE IMPORTANT THING IS TO GET PROPER ADVICE - even if it's from the Inland Revenue. There are couple of leaflets that she can get from the Revenue - CGT1 and CGT/FS1 that might help - this is the link \link{http://www.inlandrevenue.gov.uk/leaflets/c4.htm - hope the link works!

Hope it works this time

\linkwww.inlandrevenue.gov.uk/leaflets/c4.htm{}

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One last try otherwise I'm giving up!

\linkwww.inlandrevenue.gov.uk/leaflets/c4.htm{}

Thanks Twiglett - this really is my last try!

this

I give up! Have to go and collect DD from nursery

check out this link Twiglett - we've had to address this issue recently upon selling our rented flat in London that we used to live in and this was the best source of info with calculation examples I found :

www.fool.co.uk/taxes/articles/cgt_property.htm