Capital Gains Tax Property Query - Please Help!

Debt_Free_Guy

Following the ending of my relationship with my wife I moved out of my property in May 2010. My wife initially remained in the marital home but has moved out in December 2012 and I have put it up for sale recently - but early signs aren't good in the housing market.

From checking the HMRC website I understand that I won't have to pay capital gains tax until May 2013, as the last 3 years of me not living there are classed as if I was.

Here's my question. If I can't sell the property before May 2013 I intend to move back in to avoid capital gains tax, which if I had to pay it, would leave me with very little as the sale proceeds are being split 60/40 in my ex wife's favour (we are now divorced). I need to basically start again and I need a small deposit on a new property.

Is there a minimum period that I need to move back into the property for to satisfy the Taxman? For example could I move back in for 1 day and then move out again and the 3 year period would start again OR do I have to move back in for a specific period to "Re Set The Clock" so to speak.

I want to ensure that I stay within the law but I can't find any clarification on this anywhere and I've been calling the HMRC number for weeks to check but just cannot get through.....

Please Help!

Savvy_Sue

Before you get worried about that, some other questions:

When did you first buy the house?

How much did you pay for it?

How much is it on the market for?

How did you own it? sole owner, or joint with your ex wife?

You see, CGT is a tax on the GAIN, so if you don't make much profit, there's not much tax due. Also you have an allowance of just over £10,000 each year, so unless you have considerable other gains, that brings it right down. And if it was jointly owned with your ex, you get to share the gain and tax due with her, if that makes sense.