cgt on property

[al23]

Hi,
We bought a property in 2002 as residential we rented it out in 2012 till 2016 changed it to buy to let on mortgage and have moved back in 2016 we told the mortgage people we were back living in it and this was okay we still have a buy to let mortgage on it that expires in September we now want to sell it but am worried about paying cgt on the profit do we change mortgage over to residential to sell it or will we be exempt from cgt as it is our residential home we didn t change it before because of fees.Any advise would be grateful.
Kind Regardsal23

[someone]

The type of mortgage is irrelevant.

I don't know if it's true for all banks but:

You cannot live in your own property that has a BTL mortgage without permission from the bank (they may well have lent the money based on the rental income)

You cannot let a property with a residential mortgage without permission from the bank (you might use the extra income to overstretch yourself plus the bank will need to know that it might have to wait for a tenancy to conclude before it can repossess)

[AGoodman]

You need to calculate personal private residence relief, which should cover most of the gain.

Essentially, you get PPR for the proportion of time the flat has been your main home. You can also claim PPR for up to £40,000 of gain for the period when it was let.

So say you have owned it 16 years and occupied for 12 of those, you start with relief covering 75% of the gain.

If you are 50/50 owners and the total gain is less than £400,000 you should be tax free on the basis each has made a gain of £200,000, £150,000 is covered by PPR, £40,000 by lettings relief and £10,000 by the annual exemption.

You may still have to file a return, I forget.

[bd6759]

None of the gain will be chargeable. It is wholly covered by the exemptions.