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CGT exemption


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Just to get it clear in my head....

1. Live in house as PPR from Oct 2000 to Sep 2004

2. Moved to new house and rented old one out from Nov 2004 to Sep 2006

3. Sold Sep 2006

No CGT liability as sold within 3 years of moving out?

Also I could have rented out for another 4 years (until 2010) then sold and been exempt as it had been my PPR for 4 years?


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Hi Andy

You are right - in your case you have no CGT - the last 36 months isa deemed PPR, by virtue of having had the property as your PPR at some point. This covers your whole period of ownership.

If you had waiting until September 2010 then you would be subject to CGT on 3/10ths of the gain - however, you would get further reliefs after PPR exemption before tax would be paid - first being lettings relief, up to a maximum of £40k per owner (the amount depends on a number of figures) and taper relief, which , had you sold after 10 years would give a further relief of 40% after PPR/Lettings relief taken into account. Then on top of that you have a CGT annual exemption of £8800 per owner per annum (assuming it was not used elsewhere in the year).

I hope the above information helps

Kind regards


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