I have owned a buy-to-let property for 20 years. If I move back into it for two years as my sole property, do I need to pay capital gains tax (CGT) on it?
Arthur Weller replies:
If you move back into the property for two years as your main residence and then sell it, having owned it for 22 years, you will be exempt from paying CGT, due to principal private residence (PPR) relief, only for the last two years. For example, if you bought it for £200,000 and sell it for £420,000, it has gone up by £10,000 a year. So, your PPR relief will be £20,000, but you will be taxable on £200,000.