I am British but have lived and worked overseas for 19 years. In 2013, I bought a house to live in for when I come back to the UK and I have rented the place out since then with a view to moving into it when I come back next year. I intend to downsize to a smaller place to release some capital to use as a pension. How long do I have to live in the property to make it my only main residence before I can sell it and not incur capital gains tax, please? 

Arthur Weller replies:  

It is a misconception amongst some people that if they live in their property for a short time, it will be free of capital gains tax (CGT) when sold. This is not correct. Let's say you move into the house today and live in it for a year, and then sell it after having lived in it for a year and having owned it for ten years. You will be exempt from CGT on 10% of the capital gain but liable for CGT on 90% of the capital gain.