owned jointly husband and wife
thanks for this. We were not moved abroad with an employer- my husband left a job and took on a new contract with another employer in China. The contract ended and he got another job back in UK but not near the main residence (no jobs) We did not buy a property whilst abroad - had rentals the contract work provided.
So, would it be fair to day that it was your husband's decision to take a new job in China? Did your husband work as an employee of the Chinese organisation as opposed to being self-employed?
Assuming that your answer to the first question in my previous post is yes, then there will be no relief for the period of absence abroad or the period where you were living far from your home as these were choices made by you and your husband as opposed to an existing employer effectively compelling him to work abroad or far from your home.Instead, the tax reliefs will work out as follows for each of you:You each have a gain of £143,750. You will be entitled to main residence relief for the period that you lived in the property and for the last 36 months of ownership. That accounts for £99,519 (£143,750 / 169 months x 117 months). That leaves £44,231 which is the gain for the period that the property was let (85 months) and the 3 months it was vacant before letting. As the property was both your main home and it was let, you are each entitled to letting relief which is the lesser of the following:1 £40,000, 2 the gain for the period you lived in the property plus the last 36 months of ownership, £99,519 and3 the gain for the period the property was let excluding the last 36 months of ownership, £41,679.Letting relief of £40,000 will reduce the remaining gain to £4,231 and that will be covered by the annual CGT exemption of £10,900. You should have no CGT to pay.The tax office may ask for proof of the improvement expenditure in the form of receipts and invoices. They may seek to disallow any expenditure that you cannot prove.