How will 6 months renting affect my Continuous Occupancy record?

[JimB]

I inherited my house in 1987. Until 2005 I was working abroad and the house was rented to various tenants up until my return to the UK. For the last 4+ years it has been my sole residence. I understand that I can now sell it without incurring CGT, having lived there for more than the required continuous 3 years.
I have recently instructed local Estate Agents to put the house up for sale, and in order to facilitate what I hope will be a quick sale on a ‘vacant possession – no chain’ basis, I have emptied the house, moved my furniture into storage and am staying with family friends pending the purchase of a replacement house using the sale proceeds.
However, the selling agents have so far been unable to secure a purchaser during the three months they have had it for sale and they have suggested that I rent the house to a suitable six-month tenant during the winter and put it back on the market for sale in the spring of 2012.
I am hesitant to do this, as I fear it (the interruption of continuous occupancy) might invalidate my right to sell without incurring CGT?
I should mention that I do not wish to take any of the proceeds of the sale in cash but merely have my conveyancing solicitors hold the monies in their Client Account until contracts are exchanged for my replacement house.

 

[44brendan]

The legislation states that the residence should have been occupied as your PPR for the full period of ownership to qualify for full exemption from CGT. You are allowed a vacant period of up to 12 months prior to sale & still retain this relief. I'm not sure where the continuous 3 years issue mentioned by you becomes applicable. You need to contact an accountant for professional advice on your CGT obligation when the property is sold.

 

[Mrs Vimes]

OP appears to be enquiring about a UK property - very different set-up for CGT. This is an Irish site and you are unlikely to get the advice you need here.

44brendan - there is also the up-to-4-years-working-elsewhere exemption which applies provided you lived in the house before and after. This was also omitted in an Irish Times prop supp query last week - perhaps it is not generally known?

Sybil

 

[Knuttell]

A few observations..

I have emptied the house, moved my furniture into storage and am staying with family friends pending the purchase of a replacement house using the sale proceeds.

Why are you paying for storage when you could easily leave the furniture in your property...indeed its absence leaves the potential purchaser with the notion that you in a hurry to sell.

However, the selling agents have so far been unable to secure a purchaser during the three months they have had it for sale

House insurance is sold on the basis that the property will be unoccupied for no more than 30 days.

I should mention that I do not wish to take any of the proceeds of the sale in cash but merely have my conveyancing solicitors hold the monies in their Client Account until contracts are exchanged for my replacement house.

Why? Why deprive yourself of the interest you would earn even if its only for a few months...indeed some times these things can drag out interminably.

 

[JimB]

Oops! sorry folks, didn't realise this was a site-specific to Ireland law.

Thanks anyway.