Sell a home that I have rented out for 10 years - Capital gains question

[gman1]

I have been working as a resident School Caretaker for 30 years (living in the work property) but 10 years ago, I purchased a house to live in when I retired. I have now retired and the property which I'd purchased has been rented out since I bought it.

I am now looking to sell it rather than live in it due to wanted to buy a house nearer to my children and grandchildren.

I understand there is a rule whereby you have lived away from your property in a work property due to work commitments which eliviates capital gains tax - I am not sure if this avoids paying any CGT or just a portion of it.

Any help would be appreciated on this. Any way to avoid CGT would be a great help. The house that we own is in my wifes name only.

[mariner]

Don't know the CGT exemptions, but you own this poroperty which I assume you bought as an investment and never lived in. I suggest you move in and occupy as your sole / main residence for several months before puting it on the market.
Find a local tax accountant to advise.

[gman1]

Hi Mariner,

Thanks for the reply - It is my understanding that you must live there for 2 years before selling without paying CGT although I hope there is another way around this as I have had to leave elsewhere due to work commitments.

I bought the property initially with a view to move in when I retired although due to a change of circumstances, grandchildren not being local, I now wish to sell and move to be nearer to them.

[Telometer]

Mariner, please don't post rubbish. Moving in "for a few months" wouldn't help at all.

OP. As you appear to have been in job related accommodation there is no tax to pay on this property.

[gman1]

Thanks Telometer,

Is there no rule regarding 4 years maximum living in work accomodation to not paying CGT? I seem to recall reading somewhere about a 4 year maximum period.

Much appreciated.

[Telometer]

There is a 4 year rule, but that relates to working abroad.

You are in job related accommodation. http://www.hmrc.gov.uk/helpsheets/hs283.pdf reading here if you like.



By the way, how many properties do you have?

"the property which I bought"

"the property which we own"

"the property is in my wife's name"

[gman1]

We only have the one property, we bought it together but the property is only in my wife's name. Would this make any difference to the rules surrounding CGT?

I really appreciate all of you help on this, it's most gratefully received.

[Telometer]

No difference at all. From the legislation:

"accommodation is job-related for a person if it is provided for him by reason of his employment or for his spouse by reason of the spouse's employment"

Therefore your wife's property counts for your job. And realistically, although it's in her name only, you probably have joint effective ownership.