Am I Liable for Capital Gains Tax?

I bought my flat in November 2002. I lived there for 5 years but then moved in with my fiancé in August 2007 and have rented the flat for the last 2 years. It is the only property I own.

Am I right in saying that, if I sell it within 3 years of moving out, I am not liable to pay CGT? If I keep renting the flat for longer than 3 years, when I eventually sell it, do I have to pay CGT on all the profit I have made since I bought the flat in 2002?

Arthur Says:
You are right that if you sell any time until August 2010 you are not liable to capital gains tax. If you sell after that, e.g. August 2011, then you are exempt for the last three years of ownership, as well as the period of actual occupation, so you would be liable for the period from August 2007 until August 2008, in our example. The total gain would be spread over the period November 2002 to August 2011, and the gain attributable to the period August 2007 to August 2008 only would be chargeable.