CGT on house someone uses to live in?

Macha

I'm try to understand how CGT works in a situation whereby someone used to live in a property as their primary residence but hasn't done so for a few years.

If they decide to sell it after a few years of renting it out, does it mean they would only pay cgt on the increase in value during the years since they moved out?

Thanks in advance.

Edit: Oh shoot, just seen this type of post isn't allowed. Please delete, Mod.

Explosive_Cornflake

It's a ratio of years lived in it and not, explained in here with examples

Macha

Ah super, thanks. So it's not eg a question of getting a valuation done when you leave to draw a line in the sand?

Explosive_Cornflake

No, CGT =~(value at sale - value at acquisition)*((total years/years as ppr)-expenses on sale), example 2 works though your scenario.

Tombo2001

Interesting - so going on this, if I lived in a house for 10 years, and then moved out and rented it for 10 years - I would be paying half the CGT amount….? Am I reading it right?

namenotavailablE

You can treat the final 12 months of ownership as a deemed period of occupancy as a PPR so it would be a relief factor of 11/20 instead of 10/20.