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Sam
Sam, Accountant
Category: Tax
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Experience:  26 HMRC expertise, PAYE, Self Assessment ,Residency, Rental Income, Capital Gains, CIS ask for Sam Tax
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If I sell my primary home and live in the house i am now letting,how

Customer Question

If I sell my primary home and live in the house i am now letting,how long must i live in it to avoid capital gains tax when i sell it?
Submitted: 2 years ago.
Category: Tax
Expert:  Sam replied 2 years ago.
Hi
Thanks for your question - I am Sam and I am one of the UK tax experts here on Just Answer.
You will never fully avoid capital gains as you have already created a capital gain position by having a second property, which has had a period of time that it was not your main residence.
However you will for that time qualify for consideration for private lettings relief which can allow up to a reduction of gain by a max of £40,000 and of course the time you live there will form an exemption of time lived there/total period of ownership.
Then you have the first £11,100 capital gain free as this is your annual exemption allowance
And of course costs to buy and sell and any capital improvements can also be deducted from the gain -
How much the gain is will be dependent on how long you have owned this property, how much its value has increased and whether it was let out for the whole period of time from purchase to the date that you make it your main residence.
But sadly there is no avoiding the capital gain position that already exists.
Thanks
Sam