CGT when property returns to being a primary residence

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    CGT when property returns to being a primary residence

    If an owner of a Buy to let property decides to convert it back to a residential mortgage and live in it, is there a particular period of time when its historic exposure to CGT starts to diminish or does this persist?

    You say convert it back. Are you saying it used to be your residential home ( PPR) If you move back in then any period ( in months ) you live there is added to the PPR CGT exemption ratio so original residence plus the new residence plus 36 over the total period of ownership. Regards Peter


      Yes, lived in it for approx 2 years as primary residence before letting it out for approx 4 years (with permission of lender) and may be moving back to it later this year.

      I want to understand if CGT exposure ramps down in the same way that it used to taper up or if I am fantasising that it's the case.

      Sorry, I got to grips with housing law but my knowledge of CGT and taxation is frustratingly weak.


        I would need the dates and figures but as the property was exempt from CGT for 36 months from when you left the property and then Letting relief kicked in to futher offsst CGT for up to a max of £40,000 then I suspect there is no gain at present. Facts deeder to ensure that is the case. IR283 on the HMRC web site would be a good start. Regards Peter


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