I have client who is thinking to let her property for 5 years and than after 5 years, she will move back in property and live for another 10-12 years and sell this property thereafter. She is doing this project just to earn extra cash as current property were she is residing will yield good income if she rent it out for 5 years and she rents another property cheaper.
I understand that there are CGT to be paid if you don't live in property as your principal private residency from time you acquired until time you dispose it. However there is calculation carried on monthly bases, based on residential and non-residential time you live in property (e:g 72 months residential divided by 60 month of non-residential), I can't remember who this was calculated and appreciate if someone can help here.
Assuming she lived in property for 4 years and than let it for 5 years and than move back and reside as PPR for another 10 years and sell it after. What will happen to time you rent it out ? Are there any CGT dues ?
- 14 years - principal private residency
- 5 years - let property
This would be 168/60
Are there any CGT to be paid ?
Your help is highly appreciated.