CGT on Compulsory Purchased home subject to Class J exemption (Copy from Disability thread)

NeilBo

Hi
I wondered if anyone had any thoughts (I'll try to keep it brief...)

Class J:  An empty property, previously the home of a carer who is living elsewhere to better provide care to another.

My wife and I purchased our home in 1997.  From 2000, we began to provide care and support to my increasingly elderly and disabled parents while, at the same time living in our property as our only [family] home.  In 2007, to be able to continue to provide care for my parents when our son was born, we were forced to relocate to live with my parents full-time.  We continued to pay 100% Council Tax on our home, as we were unaware of the Class J exemption.  This continued until 2012, when the Council decided that our home was 'Long Term Empty' and they began surcharging our Council Tax bill. 

Eventually, for a number of reasons..., in March 2020 we managed to take the matter to the Valuation Tribunal for a judgement.  The Vice President of the Valuation Tribunal Chaired the hearing; his decision ordered the Council to repay the punitive Council Tax they had charged and to change our Council Tax banding to Class J.  He backdated this decision to 2007, as we had been arguing... 

As of 2021, we are still living with my mother, who would otherwise be required to live in full-time residential care, were it not for our 24/7/365 support. Our family home has remained empty (For a number of reasons...), we have not let it at any point and have always planned to return, at the appropriate time...  

Our Council are about to Vest the Compulsory Purchase Order they sought and obtained on our family home in 2019, on the basis that it was 'Long Term Empty'.  My question: Are we going to be liable for CGT for any gain in value since we moved to live with my parents in 2007?

Grateful for any thoughts, advice...

Jeremy535897

You compute the whole gain from 1997 to the date of compulsory purchase, and then you exempt that portion of the gain during which it was your main residence, plus the last 9 months of ownership, so if you lived there for 120 months as a main residence, 129 months out of the total ownership (perhaps 288 months) would be exempt.