Hi again.If you sell the property in, say December 2015, for £290,000 you will make a gain of £179,000 (£290,000 - £80,000 - £25,000 - £6,000). By then you will have owned it for 204 months and you will have lived in it for 58 months.The gain for the period that the property has been your main home will be exempt from CGT. That accounts for £50,892. Of the remaining gain of £128,108, the first £11,100 will be tax free leaving a net taxable gain of £117,008.There are two rates of Capital Gains Tax, 18% and 28%. The rate or combination of rates that you will pay will be dependent on the level of your income in the tax year you sell the property. If you sell it in 2015/16, one of the following scenarios will apply:1 If the sum of your income and the net taxable gain is £42,385 or less, then you will pay CGT at 18%.2 If your income alone is £42,385 or more, then you will pay CGT at 28%.3 If your income alone is less than £42,385 but the addition of the net taxable gain take you over £42,385 then you will pay some CGT at 18% and some at 28%.I hope this helps but let me know if you have any further questions.
So just to verify - I do get credited with the number of years I live in the property. It seemed as though I would only ever be credited 18 months (it used to be 3 years.) I thought I had clarified the (no more than 3 years with HMRC some years back.) I was beginning to see a scenerio of: the longer I stayed, the more would be the profit when I sold the house and more I would have to pay CGT. Yes I had reckoned it would be 28%.