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taxadvisor.uk, Chartered Certified Accountant
Category: Tax
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Experience:  FCCA - over 35 years experience as a qualified accountant (UK based Practitioner)
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I live in London flat value £500K. Moving to Manchester with

Resolved Question:

I live in London flat value £500K. Moving to Manchester with work. Thinking of changing my £300K mortgage to a buy to let and then buying a new flat in Manchester to live in.
What are capital gains tax implications of property in London.
Thanks
Submitted: 2 years ago.
Category: Tax
Expert:  taxadvisor.uk replied 2 years ago.
and welcome to the site. Thank you question.

Please advise
Is it your intention to
- retain the flat in London once to move to Manchester
- make Manchester flat your main residence

Many thanks
Customer: replied 2 years ago.

Yes retain the flat in London

and live in manchester - so that would make manchester my main residence

Expert:  taxadvisor.uk replied 2 years ago.
Sean, thank you prompt reply.

Gain from sale of flat in London would be chargeable to capital gains tax. You would have reliefs against the gain as follows:

- period the flat has been your main residence would be covered in full by principal private residence relief
- additional relief 18 months of ownership once you move out of the property, as it would have been your main residence at some point during the period of ownership
- letting relief up to a maximum fo £40k because it was your private residence and your main residence before you move out

More information on private reidence relief is covered on HMRC helpsheet hs283 here

https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/323679/hs283.pdf


I hope this is helpful and answers your question.

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Expert:  taxadvisor.uk replied 2 years ago.
I thank you my answer.

Good luck.

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