Capital Gains Tax on selling Let property

[mic@f.vf.co.uk]

I owned two properties (first property - purchased 4 years ago, second property - purchased 1 year ago). I have been letting out these properties since I bought them. Within that time I have been living with my parents which is closer to my place of work.
Would I be liable for any CGT if I sell these two properties and would it make a different if I move back to the first property before I sell it ?

[cumminsandco]

You do not say whether or not you have resided in either property as your main residence. This is crucial to the answer to yoru question.

Nigel Cummins MIFP TEP
Cummins & Co
Tax Consultants
0117 941 3052

[mic@f.vf.co.uk]

I have live at the first property for 2 months but never live at the second property.

[taxman]

The second property is likely to be subject to capiital gains tax, the rate of which will depend on your other income.
The first property may be eligible for the main residence exemption in part as you originally resided in the property, therefore the last 36 months of owner ship will be deemed occupation providing you elect for this to be your main residence.
If you also move into the property pre sale then the remainder of the gain may also be exempted as deemed occupation also arises for 36 months for 'any reason' in these circumstances. also lettings relief may be available for any balance of the gain.
However the Inspector may question this if he feels that the acquisition of the property was made 'for the purpose of realising a gain on disposal'.
I should therefore advise you to take further advice based on a knowledge of the full facts.

If you would like me to look at this issue in further details please e-mail me your telephone number and I will give you a call.
Regards,