Selling Rental Property, What CGT applies?

Davio

Firstly hello to all, i have just joined this forum.

I'm considering selling my rental property of which i purchased back in July 03, I lived in this property for 2 years and have been renting it out to tennants for the last two years. Once they moved into this property, i purchased another property and have been living here since.

I know wish to sell the rental property, although i'm confused by the CGT legislation and what will apply to myself. If there is a substantial sum to pay then i would consider in a years time, selling my current property, and moving back into the rental property which in effect would mean I would not beliable any CGT, as it would have been my primary residence for the full duration of ownership.

Some information, Rental property purchased for 124k in 07/2003, with cash, remortgaged half of property in 07/2005 of which property was remortgaged at £170k, Property is estimated to be sold at approx £175k if put on market.

Any advice on likely payments, or ways to reduce amount paid obviously would be appreciated

Lazy_Runner

I am not an expert and you should confirm the following with the tax office and/or other experts.

But if property 1 was your main residence and you sell it within 3 years of moving out, then there shouldn't be any cgt to pay.

Bean_Counter

Based on the information here, you will have no CGT to pay.

For property 1, the two years you lived in counts for private residence relief, as does the last two years because you get the last three years for free, effectively.

Property 2 also covered by private residence relief if you continue to live in it.