Minimise CGT on main but let out property

[digbydisaster]

Hello everyone, I would love some advice if anyone can help:
I am a landlord with a property on a buy to let mortgage. It is the only property that I own and I have lived in the property full time (all my banks, bill and electoral roll is registered there) since I purchased it 6 years ago, along with 2 or 3 tenants, however if I remember correctly, one of the mortgage conditions is that the morgage holder does not reside in the house. I am currenly travelling around South America and have been away from the UK for 18 months, the property I own is being let out and managed whilst I am away. I would like to sell the house when I return home and buy a property in South America. I currently fill in a tax return every year, but generally do not pay any tax as outgoings do not exceed the income.
Could someone throw a bit of light on the tax situation if I sell the house. I am worried about CGT, but the property has been my main residence the whole time I have owned it except for the last 18 months when it is still my main UK residence (all my post still goes there) but obviously I have not been living in the country. Can this property still count as my principle private residence if it has been let out in part and I have a buy to let mortgage? I have heard that if I sell within 3 years of moving out (or travelling abroad?) I can avoid the CGT? I know that special rules apply to properties that have been a main residence. The period when it was the main residence is exempt, plus the last 36 months of ownership. But I have had tenants in some of the rooms at all times of owning the house, therefore is this time exempt as main residence or not, or some percentage of it! Would it be worth me living in the house without any tenants at all for a period of time before selling the property? Sorry, am finding this all rather confusing!

Any advice would be most welcome! Many thanks in advance

[pawncob]

You're entitled to PPR relief for the whole of the period of ownership, as long as you sell within 3 years of vacating the property. A proportion of the property is liable to CGT but that will almost certainly be covered by Letting Relief, which exempts (up to) the first £40,000 of any gain.

[Incredulum]

http://www.hmrc.gov.uk/helpsheets/2008/hs283.pdf

If you have a single lodger, the rooms occupied by the lodger qualify for relief. If
you have more than one lodger, or if you let part or all of your home at any time
in your period of ownership, the let parts will not qualify for private residence
relief. However, you may be entitled to claim letting relief which is explained on
page 6.