Hi
As an Australian I bought a house in there in 2000 for £60k, lived in it until 2002 and then when I moved to UK to work, rented it out.
I intended to return to Aus and live in the house. However, in the last few years a change in personal circumstances means that it is likely I will stay in the UK. I have been resident for a number of years and am now a British citizen.
The house is now worth probably around £260k. If I sell the house I assume I am liable for CGT on the gain. Having does some cursory reading it seems that of the overall 15 year period I have owned the house I can claim an exemption for 5 years (2 years living plus an additional 3 years). So the liability will be (260-60)*10/15 or around 133k. Can I also claim a £40k letting relief, in addition to the normal £11k CGT limit to reduce the taxable gain to £82k? I will also have to pay CGT in Australia (though a smaller amount) so is there double taxation relief?
Finally is there any way of reducing these tax liabilities? It seems each year the liability will rise as the the number of rental years increases (so next year it will be £137ks since 11/16 rather than 10/16) which is more than my net rent on the property after all costs/tax etc.
Thanks
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