Will I Pay Capital Gains Tax When Selling My Home After 15 Years of Renting?

Q.4 Will I have to pay capital gains tax when I sell my home? I have rented out my house for 15 years. I’m planning to move back home, so it will be my main residence. However, I am planning on selling in six months, as my job is taking me abroad. Will I have to pay capital gains tax (CGT)?

Arthur Weller replies:

Let’s say you have owned the property for 20 years but only lived in it for the first five years. You will be eligible for CGT principal private residence relief for the first five years when you occupied the property as your main residence, plus the last nine months of ownership – the final period exemption. The remaining period of ownership will be subject to CGT. Depending on the facts, you may be eligible for ‘period of absence’ relief (see HMRC’s Capital Gains Manual at CG65030 and following) for some of the time you rented out the property.

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