CGT implication of letting my home for 2 yrs before selling?

[Free_30_day_trial]

Could anyone tell me if I'm heading for a fall by letting my current property for a few years before sale?

I bought in 2010 for £163k but its now worth in the region of £290k.

Would I end up liable for CGT on any of the gain in value during the time I have lived here?
If so, would it be very much for a basic rate tax payer?

I've looked on the government website but it is very confusing

[keith333]

Without going into too much detail the CGT is calculated on a pro rata basis. If you lived in a property for nine years and let it for one year, then the CGT would roughly be 1/10 of the gain from when you bought it to when you sell it.

The problem you have is that you have a large gain to date and the longer you rent it, the more that gain becomes taxable. Rent for one year 1/10 (10%) is taxable, two years 2/11 (18%), three years 3/12 (25%) and so on.

[ujio]

To add to the previous poster....

You will get private residence relief of 9 months (they changed it recently down from 18 months I believe).
So if you rent out for the next 2 years they will treat the last 9 months as though you lived there, like the prior 10 years. But pls double check this with an accountant.

Use this on top of your annual CGT allowance.

[Free_30_day_trial]

Thanks both.

So I will get stung but not as badly as I thought.

Will factor it into my calculations but hopefully house prices will rise enough in the next 2 years to cover any CGT.