Sale of 2nd property - CGT liability

[GWood]

I'm selling my main home in May and moving into rental accommodation (split with partner) and have also decided to sell my rental property (sole ownership) later in the year. I bought the rental property for £53,000 and lived in it for 6 years before renting out at which point I think it was probably worth £130,000. The property was rented for 12 years and I think it's probably worth £150,000 now.

When I sell the rental property it will be my only property but I'm assuming I will still be liable for CGT as it was recently rented, if so will the CGT be based on the difference in value between today and when I started renting it out? What evidence would I need to provide of the value at commencement of renting?
Is there any way I can reduce the CGT liability?

Grateful for any advice.

[AdamS93]

Technically, even the sale of your main home is subject to CGT but as you have probably lived in it since you have owned it, you qualify for principle private residence (PPR) relief on 100% of the gain meaning no CGT is due.

The sale of your other property will attract PPR for the periods you actually occupied the property and any periods of deemed occupation (such as the last 18 months). You will also get letting relief but letting relief is not as good as PPR as it is capped.

If I were you, arrange a meeting with a local accountant before you sell to ensure you claim all the reliefs available to you as well as making sure the transaction is structured in such a way you make best you of you AEA and potentially your spouses AEA. There may be a small CGT looking at the numbers but nothing that you should worry about too much.