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Period of time before Capital Gains tax kicks in

ecclesto
ecclesto Posts: 272 Forumite
Part of the Furniture 100 Posts Combo Breaker
I have been renting my house out for nearly 3 years now. As the market has not improved, I haven't tried to sell it. How long can I continue to rent it out before I have to pay capital gains on it? If I move back in after another 5 years, how long will I have to live there in order not to have to pay capital gains?

Comments

  • 00ec25
    00ec25 Posts: 9,123 Forumite
    1,000 Posts Combo Breaker
    edited 30 May 2013 at 8:26AM
    you cannot escape liability for CGT as long as you do not live there. assuming that moving back in after you've been absent for 5 years somehow cancels that out is a very common error.

    however, you have not noticed you are able to claim letting relief which means it can be a very long time before your liability converts into actually owing tax

    without any numbers from you its impossible to answer your question accurately. See this example for what I mean
    https://forums.moneysavingexpert.com/discussion/4622855
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