I have been letting my home to lodgers on and off for a few years to friends for no profit or a considerably lower profit (30% -50% of market value). I don't consider it a business or a money making scheme but I want to know if HMRC would before I find another place and go bankrupt after I get a huge unexpected bill from them! For those years I shared my house would I be liable for capital gains tax?
I've owned the property for 7 1/2 years, I would say I've been on my own for about three years, one lodger for about two years and three lodgers for about two years. During the period of lodgers I lived there on and off (mostly lived there though) and I have always considered it my only home with all my things and mail going there (I haven't rented anywhere else). I would share when I had friends who needed somehwere to stay or when I have travelled for work purposes and two two month backpacking holidays.
It feels ludicrous if I had to pay because I would have been paying CGT for the only privilege of sharing my house!