Another CGT question.....

[stepej]

I would be greatful to the PH collective if they could throw some light on the following...

If I had bought a house and then moved into rented accomodation (relocation due to work), letting out the house that I own, will I be subject to CGT if i then decide to sell the house that I own?

[voyds9]

iirc there is something like a 2 year time scale from when you move out that the first house can still be classed as main domicile (I presume to protect those who haven't been able to sell) use this to your advantage.

[Eric Mc]

Possibly.

Once you move out of the house you own it stops being your main residence at that date - even if the property you moved into is rented.
There are some exceptions to this, for instance, if the move to rented accomodation has been FORCED upon you by your work - this often applies to armed forces personnel, teachers, live in carers or people moving abroad temporarilly because of work requirements.

If the move is out of choice, then these exceptions do not apply.

As ever, the time period the house was your main residence is ignored for CGT purposes as is a further three years. As the property is being rented out, it would also be eligible for Commercial Letting Releif - which can be up to £40,000.

Finally, there are the normal reliefs available such as Taper Relief/Indexation and the CGT Annual Allowance (currently £9,200 per person).

[stepej]

Cheers Eric, as always a mine of information...