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You are disposing of your sole or main domestic residence so Private Residence Relief (PRR) and this is granted automatically and relieves Capital Gains Tax (CGT) at 100%.
I do hope that I have been able to set your mind at rest on this matter.
Yes the Inland Revenue, as it was, lost this battle big time in the 70s trying to interpret the legislation as 'sole and main' instead of 'sole or main.' They even got the Ministry of Defence to publish a Defence Council Instruction on the subject and I arrived in Nepal to find the Garrison in uproar. A one line letter put them back in their box and the Instruction was cancelled; egg on everyone's face!
HMRC will still try this one on if they think the taxpayer will just roll over and pay up, don't!
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