2nd Home Capital Gains Tax Liability

KJB87

Hi, I hope someone out there knows something about this...

I moved out of my property in January of 2009 to move away and rented out my house meaning this was no longer my main residence as I had purchased a new property.

I am now in the process of selling the house and have been informed that capital gains tax would not be due as it has been my main residence within the last 3 years, but have also been told that it would be due.

Can anyone shed any light on this?

Thanks

Radiantsoul

Well if you have been renting out the house then you will probably have claimed relief for interest on the mortgage. I am pretty sure you will not be able to do this and receive CGT relief.
The three year rule applies where you move out and don't transfer your primary residence into a business. The most obvious example would be if you worked overseas.

silvercar

If the property has been your main home, as in your case, then you are exempt from CGT for the time it was your main home and the last 3 years of ownership. In your case this will leave you with no CGT to pay. If you had moved out 4 years before sale then you would only be liable for one year as a proportion of the total number of years owned and you could mitigate this further by letting relief.

00ec25

Radiantsoul wrote: »

Well if you have been renting out the house then you will probably have claimed relief for interest on the mortgage. I am pretty sure you will not be able to do this and receive CGT relief.
The three year rule applies where you move out and don't transfer your primary residence into a business. The most obvious example would be if you worked overseas.

Incorrect
as Silvercar says the Private Residence Relief (PPR) means that if you lived in the home as your main (or only) residence, then the final 36 months of ownership are "deemed occupancy" irrespective of whether you rent it out, use it only at weekends as a 2nd home or leave it vacant during those 36 months

The OP will be 100% CGT exempt if the sale is completed within 36 months of moving out (CGT works in months not years)

don't believe us? read here

(BTW if it takes longer than 36 months to sell then the fact that you have let out what was once your main home allows you to claim another relief - lettings relief. We can explain that further if necessary)

G_M

00ec25 wrote: »

Incorrect
as Silvercar says ......
The OP will be 100% CGT exempt if the sale is completed within 36 months of moving out (CGT works in months not years)

don't believe us? read here

Thanks for the link. Where posters provide conflicting advice (which happens reasonably often) links to reputable sources are very helpful!

Radiantsoul

00ec25 wrote: »

Incorrect
as Silvercar says the Private Residence Relief (PPR) means that if you lived in the home as your main (or only) residence, then the final 36 months of ownership are "deemed occupancy" irrespective of whether you rent it out, use it only at weekends as a 2nd home or leave it vacant during those 36 months

The OP will be 100% CGT exempt if the sale is completed within 36 months of moving out (CGT works in months not years)

don't believe us? read here

(BTW if it takes longer than 36 months to sell then the fact that you have let out what was once your main home allows you to claim another relief - lettings relief. We can explain that further if necessary)

It seems I was wrong, thanks!