CGT on a property sale after change of use

I am keen to understand the CGT implications, if any, of a property sale following the change of use of the property from a former public house with ancillary living accommodation to a dwellinghouse. The property is owned by my family member. The dwellinghouse was the owner's only owned residence throughout the entire ownership period, and was the registered address for banking etc. However, unbeknown to the owner before purchase, the public house was blacklisted from a number of suppliers due to credit issues from the previous owner, which, combined with a lack of footfall, meant the public house was never operational during the current owner's tenure. The property was also unoccupied for a period of time due to the local council stating that the owner could not live there if the public house was not in operation, so the owner was forced into rented accommodation through an Eviction Notice (a decision completely out of the owner's hands, and not by choice). After lengthy planning applications, the council agreed to change of use to a dwellinghouse, and the owner is living in the property again. However, in the years it has been unoccupied the property has suffered subsidence (not covered by vacant property insurance) and the owner is now forced to consider selling the property due to the significant costs to remedy the subsidence. We are keen to understand if there is any guidance on the CGT impact / whether we need to gain HMRC clearance, either directly or through an advisor, to clarify the CGT position. Many thanks

Hi,

A number of factor would need to be taken into account. Guidance is at:

Private Residence Relief (Self Assessment helpsheet HS283)

and

Capital Gains Manual

If after reading the guidance and further information is required you will need to contact us direct on telephone number provided in this link: 

 Self Assessment: general enquiries

Thank you.