We bought our house in 1983 and it is our principal personal residence. We have rented a property in Spain since October 2010 and have rented out our house in the U.K for the same period [ we are in the HMRC non resident landlord scheme ] . We intend to rent out our house in the U.K for just one more year, and return to our house in the UK in October 2013, exactly 3 years after we left. We then intend to carry out any necessary repairs and sell the property. Would we be liable for any CGT.Bob and Linda
Hello, if you have any questions or need further clarification after reading my answer please let me know.
As the property in the UK has been your main residence up to the point you went to Spain .. this period qualifies for private residence relief for CGT purposes,
In addition there is relief for the final 3 years of ownership even if you weren't living there, as long as it's been your only or main home at some point during the time that you've owned it.
Based on information provided your capital gain on sale of property would be covered by private residence relief and NO CGT payable.
If you need more information please let me know.
I hope this is helpful and answers your question. I am available for any follow up questions you may have, and you can use the reply button to post your follow up questions to the page.
Very helpful, but just one follow up question. we may not be able to sell the property until say April 2014 because of the housing market . The final 3 years would then go back to April 2011. I take it we would not be liablefor CGT for the period from October 2010 to April 2011, when we were in Spain and starting the rental of our UK property.
Thank you for your response ...
Based on information provided all capital gain would be covered in one form of another, namely:
- Private residence relief (for period it was your main residence)
- Final 36 months of ownership
- Letting relief (for period the property was let).
There will be no CGT payable.
FCCA - over 35 years experience as a qualified accountant