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We are renting our house in the UK and want to know do we save

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we are renting our house in the UK and want to know do we save money if we move back in for a period of time, before we sell it, to reduce Capital gains Tax? If so how long do you have to live in the house again?
Submitted: 1 year ago.
Category: Tax
Expert:  TaxRobin replied 1 year ago.
HelloYes, moving back into the house would allow you some relief on capital gain.Generally to work out how much private residence relief you can deduct from the net gain, you take the number of months you lived in the house and add 18. Then divide this figure by the number of months you owned the house in total. Finally, you multiply that fraction by the net gain to give the amount by which you can reduce the net gain.If you moved back in after letting but before selling, rather than adding 18, you add the number of months out of the final 18 of ownership not covered by actual occupation. So, for example, if you moved back in for six months before selling, you would add 12 to the number of months you actually lived there.You can also look to letting relief. You take the number of months you let the property less 18 (or the lower figure if you move back in during the last 18 months). Then divide this by the total number of months you owned the house and multiply this fraction by your net gain.You will need to calculate the rental use even if you move back in for longer than 18 months. The longer you live in the home as your main residence the lower portion that will be taxable.
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