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Sam, Accountant
Category: Tax
Satisfied Customers: 14192
Experience:  26 HMRC expertise, PAYE, Self Assessment ,Residency, Rental Income, Capital Gains, CIS ask for Sam Tax
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Hi, Im currently getting divorced so I dont live in my house

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Hi, I'm currently getting divorced so I don't live in my house and haven't done since 01/06/12. Originally I was thinking there was a 3 year grace period on selling the house because it was my private residence. I read an article that from April this year that is now 18 months. So I'm now thinking either I have to sell it very quickly or I have to at some point in my life move back there. Even if I do that will I still be exposed to capital gains tax as I wasn't living there even if I'm not earning any rent. The gain is around 250,000 over a 10 year period.
Hi Ben

Thanks for your question

You are correct that it is currently 36 months, that the last period of time can also be treated as exempt for capital gains, under the private residence relief rules, and also that this is due to change from 06/04/2014 to the last 18 months.

However, at this time we have no details revealed as to whether this will be for ALL sales after 06th April, or whether any concession will apply.

However lets assume that this does change to 18 months for ALL sales, that take place after 05/04/2014, then even a move back into the property will only expose you for the period Dec 2013 to date for capital gains purposes, which I am sure will be fully covered by your annual exemption - which currently is £10,900 and will increase to £11,900 from 06/04/2014.

And it may be, this still puts any gain under the annual exemption limit, should you set about selling sooner (rather than move back in)


Customer: replied 4 years ago.

Hi Sam,


Thanks for replying to my question.


So what I think your saying is, the amount of capital gains tax is calculated for the period when it wasn't your primary residence so it's not an all or nothing calculation. So if I owned a property for 10 years and for one year it was not my primary residence I would have to pay 10% of the 18% or 28% capital gains tax as a whole so basically either 1.8% or 2.8%. If my house is sold in six months time then this would roughly be the calculation because after adding on the 18 months grace period it would be around 1 year out of probably 12 by then which as you say would be below my capital gains allowance for that year.


Could you confirm if the above is correct, a one line reply would be plenty.


Best Regard,



Hi Ben

That's right - although within that all or nothing calculation you are given credit for
10 The time it WAS your main residence and
2) The permitted period of time after - so currently 36 months, soon to be 18 months

And the gain once established is either 18% OR 28% or a mix of both, dependent on your annual income, and what unused basic rate band you might have.

If you wish a calculation made, then I afraid as per Just Answer policy - you would need to list this a new question as it did not form part of your original question - I am sorry bout that.



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