For the purposes of CGT, a property is classed as your main residence if the following apply:
You’ve lived in it as your main home for all the time you’ve owned it
You have used the entire property as your home. For example, you haven’t let any part of it out or used part of it for business purposes
If these points apply, you may qualify for principal private residence relief. This means you will not have to pay CGT when you sell the property. However, if they don’t apply, you may have to pay some tax.
It’s also important to note that there are restrictions on your claim if you’ve used any part of your property for something other than your home. For example, if you used 75% of it as your home, and 25% for your business. In this case, you would only be able to claim for 75% relief – the percentage of your property that you’ve used as your main residence.
You can find out if you’re eligible for principal private residence relief here.