Private residence relief

PAS_2

I have a question about capital gains tax. I have lived in my current house for seven years. I am about to take up a teaching post and am required to live in tied accommodation. Obviously, I want to keep in the property market so that I have somewhere to live when I retire in 15 years time. If I let my home (the only property I own) and later sell it to buy another, will I be liable for capital gains tax? Is there any advantage in selling my current house and buying that retirement home now? I am hoping that I can claim my house to be my sole residence and claim private residence relief, but I have been told that after three years I will be liable to GCT.

Bordera

If you are required to live in tied accomodation by your employer then principle private residence relief will be available for 4 years, but to qualify you must occupy the house again after that period of time unless certain criteria are met.

The last 3 years of ownership also qualify automatically, so you could possibly have 7 further years before capital gains becomes an issue.

If a property has been rented, then let property relief may also be available to reduce a potential capital gains tax charge.

It may be in your best interests to make a Principal Private Residence election in respect of your home. There is a 2 year deadline for this from the date you begin to live somewhere elsewhere

I'd recommend discussing your particular situation with a local accountant as your specific circumstances may require other action.

Good luck in your new job.