capital gains tax avoidance

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some years ago I purchased a house which I used as my primary residence.

After ten years I moved out and put tenants in. They have been there for five years

I now plan to return to this house after giving tenants notice to quit in a way required by the law and the tenancy agreement.

I will move back into the house and it will become my primary residence.

I have heard that if I live there for a period of time I can legally avoid paying CGT when I come to sell it.

Am I correct in this and if so what is the minimum period of time I need to live in this house?

Has HMRC published any thing on this ( I have drawn a blank on their web site) or do you know if the tax bodies have published any thing on this?

Thanks
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silvercar

Its qualative not quantative, so in theory providing you are really living there it shouldn't matter how long for.

In practice I would say 6 months with all utility bills and credit card bills and employer's notified address and electoral roll would be above suspician. One year if you want to be absolutely sure.

You would gain exemption from CGT for the time it was your PPR and the last 3 years of ownership. The chargeable gain would then be calculated proportionately. You also have a CGT allowance.

CLAPTON

There is no specific tax advantage in moving back into the house.

As i understand you, you bought the house 15 years ago, lived there as your PPR for 10 and let it for 5 years.

Of the total gain, you will be allowed 10 years (your PPR) plus the last 3 so 13 in total.

so the taxable gain will be approximately only 2/15 of the gross gain.

Plus you are allowed letting relief up to 40,000 and of course your own CGT allowance of 9,200.

If you sell before 5th april you will also be allowed indexation relief and taper relief.

Depending upon the buying and selling price its possible you will have little or no tax to pay.

If you want to post the actual dates and price and whether jointly owned etc then one can be more precise.