I moved into a property a few years ago and have spent a significant amount of money upgrading it. However, it no longer suits my needs and I’m thinking about moving on. I’m trying to decide whether I should sell the house or rent it. As the property is now worth more than I paid for it (I have a recent valuation to evidence this), would this be taken into account when I come to sell it in future, or will capital gains tax be due regardless?

Arthur Weller replies:
If you have lived in the property all the period of your ownership, then all the increase in value - the capital gain - should be free of capital gains tax due to principal private residence relief.