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The CGT rules for residential property are changing significantly with effect from 6 April 20120. See here.
As of now, if you sell the property today, the gain for the period that you lived in it and the gain for a maximum of the last 18 months of ownership when you are not living there will be tax free. That would leave about 5 months worth of the gain subject to CGT which may be covered by letting relief. See HS283.
From 6 April 2020, the last 18 month relief will be reduced to one of 9 months. Letting relief will be available only to those property owners who live with their tenant. So, if you sold the property on 6 April 2020, the gain for the period that you lived in the property and the gain for the last 9 months of ownership will be tax free leaving 20 months worth of the gain taxable. The first £12,000 of gains made by an individual in any one tax year are tax free.
If you draw out some equity, whilst it will not be taxable, when you sell the property it will form part of the capital gain. That won't be a problem so long as your property does not lose value or better still rises in value.
I hope this helps but let me know if you have any further questions.
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