Q I have lived in my flat for nearly seven years so it is my main residence. I have just bought a second flat and am considering moving in there, then letting the flat I currently live in for about two years. If I sell it later, will I have to pay capital gains tax as it will have been let for the last two of the nine years that I have owned it?

FM

A If you sell within three years of moving out, you won't have to pay capital gains tax on any gain you make because of private residence relief, which makes gains on the sale of a home tax free. But if you wait longer than three years, there could be a capital gains tax bill but not on the whole gain. The time you used the flat as your main home is taken into account when working out the proportion of the gain that is taxable. You will find a more detailed explanation of the rules in Help Sheet 283 private residence relief available at the HM Revenue and Customs website.