Capital Gains Tax on primary home - Moved out to help our son with learning difficulties

Al1976

In 2007 my wife and I rented our primary home and moved in with my mother. We continue to live together now. We did this to help our son. He has significant learning difficulties and we did this to help get him into a suitable school. We also needed mum around for help with him. We didn't realise capital gains tax would apply for the time we had it rented. We thought as it was our primary home we would be exempt. Given our situation and the necessity to move in with my mother for help would we be eligible for any exemption of capital gains tax now we are selling. The rent helped us pay for the low fees associated with his school. Any help much appreciated. Thanks

Keep_pedalling

No exemption, your primary residence was your mother’s house while you lived with her. I would not beat yourself up about not realising it might effect you, your are almost certainly far better off financially than you would have been by selling and sitting on the cash.

When did you actually buy the house and how much has it gone up in value?

[Deleted User]

It has more to do with primary residence I am afraid and the property ceased to be that when you left in 2007. 

There are are no exemptions known to me with the circumstances that you have described. 
You need to calculate as follows. 

A) Proceeds less selling costs less costs of improvements less purchase price less purchase costs.

B -  Ascertain the total months when it was your main residence and add 9. 

Multiply A by B and divide by the total number of months that the house was owned.

You halve this figure to determine the gain for each of you and deduct 12300 to arrive at the taxable amount which will attract tax at 18%, 28% or a combination of both. The gain must be declared and tax paid within 30 days of sale.


https://www.gov.uk/capital-gains-tax/report-and-pay-capital-gains-tax

Al1976

Sorry we moved out in 2012.