How long do you have to live in your primary residence to avoid tax when you sell?

Question

CAPITAL GAINS TAX

Answer 1

Fred H is incorrect -

To be eligible for an exclusion, your home must have been owned by you and used as your main home for a period of at least two years out of the five years prior to its sale or exchange. The required two years of ownership and use during the five–year period ending on the date of sale do not have to be continuous. You can meet the ownership and the use tests during different two year periods. However, both tests must be met during the five–year period ending on the date of the sale or exchange.

Answer 2

3 of the past 5 years.

There's other rules about the primary dwelling capital gains reduction. It only reduces the taxable amount by up to $250,000 (if I remember correctly) And there's a limited frequency that you can use the deduction.

Consult a tax expert.

Answer 3

I assume you live in the UK.

If this is your prime personal residence then Capital Gains Tax does not apply.

If in any doubt speak to a tax advisor