11:25 AM, 24th June 2019, About 3 years ago 7
I have now sold my main residence home and have given my son the cash from the sale.
I will now be moving into one of my rental properties which I have never lived in previously.
Once I have lived there it then becomes my main residence and as my principal residence for 12 months or more will I have to pay Capital Gains Tax (CGT) on any future sale?
Click Here to work out tax relief when you sell your home
Period of ownership >> Click here for HMRC guidance
“Your period of ownership begins on the date you first acquired the dwelling house, or on 31 March 1982 if that is later. It ends when you dispose of it. The final 18 months of your period of ownership always qualify for relief, regardless of how you use the property in that time, as long as the dwelling house has been your only or main residence at some point.
If you’re a disabled person or a resident in a care home the final 36 months of ownership may qualify for relief if you don’t have any other relevant right in relation to a private residence.
If the dwelling house has not always been your only or main residence, you’ll need to split the gain. When calculating the proportion of the gain eligible for relief, you multiply the gain by a fraction equal to the periods of occupation (including the final 18 or 36 months where appropriate) divided by the period of ownership (both periods starting at 31 March 1982 if the house was owned before that date). You don’t introduce valuations of the property at the dates of changes of use.
4.4 Example 4
You bought your house in January 2005 and sold it in January 2017. You lived in the property as your only or main residence apart from 18 months in 2006 and 2007 when you lived in a different house. So the house qualifies for relief for 126 out of the 144 months you owned it. A proportion of any gain you make from the disposal amounting to 126/144 will qualify for relief. If you had moved out of the house at some time after July 2015 instead of in 2006 and 2007, your relief would not be restricted. If you had bought the house before 31 March 1982, the calculation above would begin from 31 March 1982 and not from when you bought the house.”
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