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bigduckontax, Accountant
Category: Tax
Satisfied Customers: 10270
Experience:  FCCA FCMA CGMA ACIS
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I purchased a residential property with my wife back in June

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Hello. I purchased a residential property with my wife back in June 2015 for £284,950 and as of May 2021 the market value is now £338,500 so a total gain of £53,550.From June 2015 to June 2017 this was our primary/sole residence. I then accepted a new job offer in Dubai with another employer and relocated to the UAE in July 2017. My wife also relocated to the UAE in October 2017.To cover the mortgage, our UK residential property was rented out to tenants from September 2017 until May 2021 as the tenants are moving out. During this period we qualified for non-resident landlord tax relief.My wife and I have now returned to the UK as of April 2021 as my job has relocated back here and we will be moving back into our property in June 2021.As the property was rented out for a period of time my question is what is our Capital Gains Tax position if we were to sell our house in order to release the equity and put it towards the purchase of a new home? Is there a more tax efficient way to execute this sale or ideal way to time it?
JA: What are the assets or property for this capital gain?
Customer: Residential Home
JA: Is there anything else the Accountant should know before I connect you? Rest assured that they'll be able to help you.
Customer: no

Did you occupy job related accommodation in Dubai?

Customer: replied 1 month ago.
I received a monthly accommodation allowance with my job which I used to rent a flat in Dubai.
Customer: replied 1 month ago.
Ok. I will wait for your written response instead

Unfortunately, not quite the same as the occupation of job related accommodation would extend Private Residence Relief (PRR). . You will incur a Capital Gains Tax (CGT) liability for the period rented out against to total ownership period.

I am sorry, I do not do telephone calls any more, they are no longer cost effective.

Customer: replied 1 month ago.
Thank you!
Customer: replied 1 month ago.
are you able to provide a calculation for this?

Pleased to have been able to assist,

bigduckontax, Accountant
Category: Tax
Satisfied Customers: 10270
Experience: FCCA FCMA CGMA ACIS
bigduckontax and other Tax Specialists are ready to help you

Glad to have spoken with you link here detailing why the whole gain is exempt at this time

https://www.gov.uk/tax-sell-home/absence-from-home

Thanks