Readers’ forum: Does three year rule assist?

12 August 2024

Issue: 4949 / Categories: Forum & Feedback , Only or main residence

CGT liability

For the last 16 years my client has owned just one residential property. For the first eight years it was her only or main residence. From the ninth year onwards she has by choice been living elsewhere in rented accommodation and the house has been tenanted (until the last tenants moved out some months ago).

She has told me that she may market the house for sale soon in its current empty state. Alternatively she may instead give up her rented accommodation and make the house her only home again for some time. She has asked me for advice on her capital gains tax (CGT) liability but although I have researched the legislation and the HMRC manuals I am still not completely sure of the position.

Under TCGA 1992 s 223(1) the house will effectively be treated as her main residence for her final...

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