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Selling my rental property and Capital Gains Tax

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Author Topic: Selling my rental property and Capital Gains Tax  (Read 571 times)
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I like property

« on: June 02, 2018, 06:24:34 PM »

Hi, ,
I am Steve I am a small time landlord and I am trying to make a plan regarding tax.
I have my main residence(never let) and a rental which has always been occupied by a tenant.
Both properties have no mortgage.
I plant to sell the rental in 3 years meaning a total of 60 months letting.
I am assuming my profit will be 100k.
So if I stay in my main residence and sell the rental meaning CGT,  my calc is as follows.
Tax - private  residents  relief  - PRR
Lettings relief. - LR

Profit. 100k    60 Mths total.  Last 18 PRR
18 /60ths  of 100k = PRR of 30k

32/60ths of 100k = LR of 53.3k(but HMRC limit to Max of 40k)

30 + 40=70k
Chargeable gain 100-70=30k. 
So 30k is liable for CGT

My question is this . 
If I do NOT  move into the rental property , will i get the Lettings Relief. ?  If no , how long do I have to move in for ?
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