Rickie Lowery outlines the rules relating to the disposal of an only or main residence and the capital gains tax implications of absences and other uses by the owner.
Where an asset is disposed of, any excess of proceeds over costs is subject to capital gains tax (CGT), after deducting the annual exempt amount (£6,000 for 2023/24) if not already used elsewhere. For residential properties, the remaining gain is taxed at either 18% (for any gains falling within the basic rate band after taking into account other income) or 28% (where total income and gains exceed the basic rate band).
To prevent individuals having to pay CGT every time they move house, several reliefs are available, provided certain conditions are met (all statutory references refer to TCGA 1992).
