cgt on a flat

[134Shopping]

I own a flat and lived in it from 2001 to 2007 but then moved in with my girlfriend. After a year I let out my flat for rent, and still do. Now I want to move back, and will have to sell. I do not own any other property, and never have. As the property has gained in value like everywhere else over time someone has said I need to pay CGT. Is that right? And if I was to move back in for a certain period would that make it ok? Plus what if I just sell and take the money, how exactly is the tax man going to know? Perplexed and astonished to find I may owe thousands when it was the only place I ever owned.

[maths]

7.5/16ths of the gain will be exempt due to the private residence exemption (you lived in it for say 6 years and the last 1.5 years of ownership is assumed occupation).

7.5/16ths of the gain will also be exempt due to lettings relief (you let it for the same length of time ie 7.5 years) capped at £40,000.

Annual exempt amount £11,300.

Depends on figures but any CGT liability seems most unlikely.

[134Shopping]

Thanks that's made me a little more optimistic .... I just feel kind of robbed, I paid 'rent' the whole time I wasn't living away from the flat almost as much as I got from actually renting it out. I do not understand 'letting' relief either. But as to the last question - its only because someone told me about this that I know. Why don't I just not tell the taxman? Is the conveyancer under a duty to report all sales or something?

[darthblingbling]

HMRC have many ways of finding out a property has been sold.