CGT on house after separation (moved out, back in, back out)

MR_Johnson67

Please could I have your consideration.

We purchased the house in 2010. we were not married or in a civil partnership but were in a relationship

In Jan 2016 I moved out to rented flat . My partner remained in the house

In May 2018 I moved into a hotel but spent some time BACK in my house but we were NOT living together as husband and wife. During Lockdown I spent most nights sleeping in the hotel due to covid restrictions, although towards the end I sleeping the majority of nights in the house.
Hotel was just a room with a bed and a washbasin, there was a shared bathroom for six rooms. 

In April 23 I moved out of the house permanently . 

The house is now on the market

I am not sure what to think regarding capital gains tax I will have to pay.

Jeremy535897

Study the absence rules in https://www.gov.uk/government/publications/private-residence-relief-hs283-self-assessment-helpsheet/hs283-private-residence-relief-2025
You won't have elected for anywhere to be your main residence, I guess. This house was the only one you owned, at least until 2023? Read the section on elections regarding main residence where you have no financial interest in the other properties.
As you were not married or in a civil partnership, the rules for couples don't apply.
I assume you own half the property.
Having read the publication above, you may find that the absences you are allowed, plus the time you actually lived there, plus the last 9 months, give you more exemption than you thought.

MR_Johnson67

Thank you for your reply

I have not owned any other accommodations. 

I did not elect anywhere to be my main residence. The tax people (Hmrc?) had my address as my house throughout sll
periods.

i have always (including now) rented or been in a hotel (paid weekly)

I wonder if the initial period when I moved out can be counted as residence be a cause it was less than three years and I sort of moved back? 

Jeremy535897

You said you slept in the house most nights, so i don't see why not. Once you moved out permanently, that period is not exempt, except the last 9 months.
Work out the exempt period in months, take that off the total months, giving you the taxable months, and multiply the gain by taxable months/total months to get the taxable gain. Then deduct the annual exemption if not used elsewhere.
When you sell, the tax is due 60 days after completion, an online return is required if there is tax due, and you will also need to do a self assessment tax return for that tax year.
The online return process is described here:
https://www.gov.uk/report-and-pay-your-capital-gains-tax/if-you-sold-a-property-in-the-uk-on-or-after-6-april-2020

MR_Johnson67

Jeremy535897 said:

You said you slept in the house most nights, so i don't see why not. Once you moved out permanently, that period is not exempt, except the last 9 months.

Again thank you for your comprehensive answer. I am using it to better understand the situation and I appreciate the time you have taken.