Private residence relief

Hello I have nominated in my home in the UK when I first acquired it in 2022 as my principal residence ( I lived in this house from the acquisition date until my move to the USA) . I was offered a full time employment contract by a USA company and moved to the USA last year to take this up. This assignment will last 2- 5 years. I have retained my house in the UK as my plan is to return to it at the end of that period. I am prevented from living there as I have to reside in the USA to perform my work. Can you please let me know if the the following is correct: i) Any gains in the value of the house will be exempt from CGT for the period I live and work in the USA (regardless of how long that is) when I return to the UK permanently and subsequently sell the house. ii) In the event that I decide to sell the house whilst I am in the USA all gains in the value of the house over the period I live in the USA prior to the sale will be exempt from CGT. For the foreseeable future I will be living in rented accommodation in the USA . If I were to purchase a flat/ house in the USA would the position relating to CGT exemption to my UK home be impacted by that? I am a UK citizen and my plan is to return to the UK in the future. PS - I should note that elderly grandmother has lived with me in my UK home and she continues to reside there. I understand that you can only provide a response on the basis of current legislation and rules and these may ychange in the future. Thank you for your help

Hi,
We cannot comment on future events as legislation and,or, plans may change.
Thank you.

For what it is worth, under current law: i) Yes, provided you remain employed in the US until your return to the property (although, to be pedantic, it is a relief rather than an exemption) - see TCGA s.223(3)(b) ii) Yes, provided you remain employed in the US and meet 223(3B)(b), which you probably do, given it would be a long commute otherwise: "in a case falling within paragraph (b), (c) or (d) of that subsection, the individual was prevented from resuming residence in the dwelling-house in consequence of the situation of the individual’s place of work or a condition imposed by the terms of the individual’s employment requiring the individual to reside elsewhere, being a condition reasonably imposed to secure the effective performance by the employee of his duties" If you buy a US home, I think your UK home might still qualify but you would need to make an election within 222(5) within 2 years. definitely don't rely on that any more than you would any stranger on the internet.