Principle Private residence
20 January 2004, 05:19 PM
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Just a simple question but I have several properties - 2 are mine and another I rent
I have one just to hang out in when I'm up North and the other is my main residence. I dont rent out the Northern home - pay council tax at 50% - soon to be 90%, etc
Would I be subject to CGT on it - or am I allowed to have 2 residences - given that I do and can prove that I live in both - just interested...... dont see why I should pay CGT if I sold but then someone did question me on this the other day (no not the Revenue!!!)
Rgds in advance
I have one just to hang out in when I'm up North and the other is my main residence. I dont rent out the Northern home - pay council tax at 50% - soon to be 90%, etc
Would I be subject to CGT on it - or am I allowed to have 2 residences - given that I do and can prove that I live in both - just interested...... dont see why I should pay CGT if I sold but then someone did question me on this the other day (no not the Revenue!!!)
Rgds in advance
21 January 2004, 09:20 AM
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Don't think you do because it's a second home so not really a source of income.
As scooby96 says have a look on the web site or phone them and ask, i've done that before and they were helpful when I was selling a property, saved a few £££
As scooby96 says have a look on the web site or phone them and ask, i've done that before and they were helpful when I was selling a property, saved a few £££
21 January 2004, 11:59 AM
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I believe you would not be liable for CGT if you have lived in the house as your principle private residence within the previous 3 years. A friend (accountancy lecturer) has more than one property, the others rented to students. So long as he "moves back" into each house within a 3 year period, even if only for a week, no CGT is due if he sells it.
But I would check this out with an accountant yourself, don't take my word for it.
But I would check this out with an accountant yourself, don't take my word for it.
21 January 2004, 01:02 PM
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Yeah sad really as I am an accountant
I know that to attain PPR you need to have lived in the property for 2 years prior to renting it lets say
I'm also aware of the 3 year exemption from CGT for renting if it was previously lived in for at least 2 years
Was not aware of the 1 week move in thing and then say rerent - interesting but sounds wrong.......
I guess that a lot of people just go through the loop as it where
I di wonder about the people on the house improvements side - if yo live in a house and do one up the profit element of the sale never seems to get taxed? - must either be subject to income or CGT I would have thought. so those people who uy a house for £200k put in £50k spend and then sell for £300k 6 months later arent they subject to some form of tax
From my perspective I certainly dont want to strike up any discussion with the Revenue....... IMHO they are idiots who have generally not got a clue..... well I always have to set them straight with my tax return - this year I'm doing the tax so they dont get it wrong!
My scenario is having 2 PPR's which wont be rented at any point - my initial response is that I aint telling anyone!
I know that to attain PPR you need to have lived in the property for 2 years prior to renting it lets say
I'm also aware of the 3 year exemption from CGT for renting if it was previously lived in for at least 2 years
Was not aware of the 1 week move in thing and then say rerent - interesting but sounds wrong.......
I guess that a lot of people just go through the loop as it where
I di wonder about the people on the house improvements side - if yo live in a house and do one up the profit element of the sale never seems to get taxed? - must either be subject to income or CGT I would have thought. so those people who uy a house for £200k put in £50k spend and then sell for £300k 6 months later arent they subject to some form of tax
From my perspective I certainly dont want to strike up any discussion with the Revenue....... IMHO they are idiots who have generally not got a clue..... well I always have to set them straight with my tax return - this year I'm doing the tax so they dont get it wrong!
My scenario is having 2 PPR's which wont be rented at any point - my initial response is that I aint telling anyone!
21 January 2004, 01:14 PM
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Think the clue is in "principle private residence "
From one of the leaflets on the IR site
I would say the 1 week stay dodge is highly questionable.
Denao
From one of the leaflets on the IR site
In most cases you will not pay tax on any gain you make when you
dispose of your only home. Similarly, if there is a loss on the
disposal the loss will not be allowable. You may have to pay tax if,
for example:
you have had a second home, and the property you have
disposed of has not been your main home during your whole
period of ownership.
dispose of your only home. Similarly, if there is a loss on the
disposal the loss will not be allowable. You may have to pay tax if,
for example:
you have had a second home, and the property you have
disposed of has not been your main home during your whole
period of ownership.
Denao
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