The CGT relief is split on a time basis. You look at your total gain based on your original purchase and your final sale. You then split it between the time it is your main residence and the time it is not.
So if the property has been your main home for half the period you have owned it half of the gain is exempt; if it has been your main home for three quarters of the time you have owned it three quarters of the gain is exempt.
But the relief is more generous than this. In particular the last 36 months of your ownership of a property which, at some time during your ownership, has been your main home, is always treated as an exempt period, even if you had another main home at the time.
If you sell two years after the property has ceased to be your main home your whole gain should be free of CGT.
If you would like further information please do contact me.
Anthony Nixon ATII
Associate Solicitor
Lester Aldridge Solicitors
Russell House
Oxford Road
BOURNEMOUTH BH8 8EX
Direct Line: + 44 (0)1202 786236
E-mail:
anthony.nixon@LA-Law.com
Website:
http://www.lesteraldridge.com