CGT when lived abroad and rented

My husband and I bought a house in the UK in 2015. In 2019 we moved to the US for my husband’s job. Whilst living in the US we lived in a rented property only in the US and rented our UK house out. The amount of money we received in rent from the tenants in our UK house didn’t cover the cover our mortgage fully so we also contributed money towards it. In 2023 we moved back to the UK as we couldn't stay in the US due to visa constraints. We are currently living with family in the UK as we are still trying to find jobs. The tenants are still living in our house and we are still paying the extra needed to cover the mortgage. If we want to sell the house, do we have to return to the house and live in for two years so we don’t have to pay capital gains tax?

Hi Autumn Fall,
Yes. you also need to declare the rental income as you were classed as a non resident landlord whilst living in the US, even if a loss was made.
Thank you.

Not HMRC, you need to complete and submit SA returns for each year from departure/commencement of letting, including both property pages and residence pages, regardless of property profit/loss, otherwise HMRC can assess your worldwide income (taking in to account the Double Taxation treaty) for this period. n.b. mortgage interest is not an allowable deduction, but relief may be given as a tax credit, personal allowance also claimable, year of departure and return split year (probably). If done all that already ok. Re the CGT, net sale proceeds (after legals etc) less total costs to buy give the gain. Gain split 50/50 if joint. PPR relief amount is number of months lived in plus final 9 / total period ownership, balance charged to tax after annual exemptions. The 2 years thing is re notifying re which property PPR, nothing to do with CGT calculation...if youve made a gain it is apportioned over entire period owned, the relieved period is the period you lived in it as a fraction of the time owned...