How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Your Own Question, Chartered Certified Accountant
Category: Tax
Satisfied Customers: 5027
Experience:  FCCA - over 35 years experience as a qualified accountant (UK based Practitioner)
Type Your Tax Question Here... is online now

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.
Submitted: 2 years ago.
Category: Tax
Expert: 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: 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

I hope this is helpful and answers your question.

If you have any other questions, please ask me before you rate my service – I’ll be happy to respond. and 2 other Tax Specialists are ready to help you
Expert: replied 2 years ago.
I thank you my answer.

Good luck.