Hi.Take a look at HS283 here for information on the main residence and CGT. From 6 April 2015, the gains made by non-UK residents on the disposal of UK residential property will be taxed in the UK and the government intends to withdraw the ability of those with more than one home to elect for one to be treated as their main home regardless of whether it is or not.Unless you are married or in a civil partnership and the property you wish to sell is put into joint names whilst you are living there and it is your main residence, your partner would not qualify for main residence relief or letting relief on their share of the gain. It would also have to be let during their part-ownership of it.As things stand, you will make a gain of £79,000 if you sell the property, less costs of buying and selling it. Assuming the property is sold by 5 April 2015, the gain for the period that you lived in it will be exempt from CGT as will the gain for the last 18 months of ownership (previously 36 months ). Therefore, the exempt gain would be £29,196 (£79,000 / 23 years x 8.5 years). The non-exempt gain is £49,804 (£79,000 / 23 years x 14.5 years).As the property has been both your main home and let, you will be entitled to letting relief which will be the lesser of:1 £40,000,2 the exempt gain of £29,196 and3 the letting period gain of £49,804.Letting relief of £29,196 will reduce the non-exempt gain to £20,608 and the annual CGT exemption of £11,000 will leave you with a net taxable gain of £9,608 on which you will pay CGT at 18% or 28% or a combination of the two rates depending on the level of your income in the tax year of disposal.I hope this helps but let me know if you have any further questions.
I've never had anybody make the point you did about HS283 before. My answer has all you need to know. It was your main residence. Now it isn't. I've split the gain into taxable and non-taxable parts based on who has lived there during your ownership of it, you (non taxable period) or a tenant (taxable period).