I got some legal advice about this and thought i would post it here as it might be something someone else might need to no so here goes.
"No problem with the questions. Yes that is correct, as this is not your principle private residence (the home you live in) you will be subject to CGT on the sale.(The figures for example i gave were the house value was 90,000 upon probate and is now 110,000 in value)
The profit with those figures would be £20,000 and everyone gets an ‘annual exemption’ in 2017/18 against CGT of £11,300. This means that the first £11,300 would be tax free and the balance of £8,700 would be subject to CGT at 18%/28% depending on your other income for the year.
In 2017/18 you can earn up to £45,000 at the basic rate band (18% CGT) therefore with your new employment and state benefits you receive it is likely you would only be taxed at 18% providing you have no other income in the year to 05/04/17. Any income about this would mean (28% CGT)
One way to mitigate the tax would be, if you are married, to transfer 1/2 of the property into your spouses name. You would then also have their £11,300 ‘annual exemption’ to use against any profits. I.e.) £20,000 profit would be split equally, £10,000 each, which would be covered by both ‘annual exemptions’ of £11,300 and therefore no tax payable.
It would likely cost a small fee to transfer the property through a solicitor. You would also need to ensure you and your spouse sold/sell no other capital items in the year 2017/18
No problem with the questions. Yes that is correct, as this is not your principle private residence (the home you live in) you will be subject to CGT on the sale.