Another capital gains question!

JoLam

I bought my house in 2012 and lived in it until November  2018 (about 6 years). I then moved out for 2 years and tenants lived in it.  In 2019 I bought a tiny flat elsewhere as a second home. I returned to my main home, my house in November 2020. 

I understand that I do pay some CGT when I sell as it was tenanted for 2 out of approx 9 years of ownership.  But do I calculate the gain from the date the tenants moved in (as opposed to the much earlier purchase price)? Also, do I have to live in my main home for a period after I’ve returned to it to qualify for some CGT relief, and if so, how long?  Regards jolam

[Deleted User]

JoLam said:

I bought my house in 2012 and lived in it until November  2018 (about 6 years). I then moved out for 2 years and tenants lived in it.  In 2019 I bought a tiny flat elsewhere as a second home. I returned to my main home, my house in November 2020. 

I understand that I do pay some CGT when I sell as it was tenanted for 2 out of approx 9 years of ownership.  But do I calculate the gain from the date the tenants moved in (as opposed to the much earlier purchase price)? Also, do I have to live in my main home for a period after I’ve returned to it to qualify for some CGT relief, and if so, how long?  Regards jolam

The gain is based on the price from when you bought the property, not when the tenants moved in.  You will get relief for the months you lived in the property as your only or main residence plus the final 9 months of ownership.  There is also a CGT relief of £12,300 this tax year.

JoLam

Okay - appreciate this input - with the ‘final 9 months of ownership’ - is the 9 months taken off the time the tenants were in? I’ve been back in my property about 9 months.
from what you say, there’s no minimum time back in your property for it to be a main home?