My questions need clarification and mainly concern main residence status for the flat elected since June 1 - the date I moved in.
It seems as though one gets the 18month freedom from tax after leaving a main residence at the same time as one is enjoying tax relief in the new main residence. Is that correct/
.I am not terribly concerned as to where I stand on the house. which I elected as my main residence for four years or so.until moving out on May 31 2015. It is now let. I assume I will be liable for tax on all rental profit as well as any of its value rising after I moved out on May 31. The house cannot now be sold until the end of the tenancy in May 2017 .
I have notified HMRC of my change in main residence to the flat since June 1. My main question (in three parts) now is:
I intend to sell the flat asap. Do I get any benefit from the 18 month rule after moving out of the flat in 2011.
Will I only get immediate relief on value rises in the flat from june 1 until a sale is completed say by December 2015?
Will I have to qualify for main residence relief for the flat by remaining in it for a particular minimum of time say three months?
The flat was next door and fairly empty -used just for light private office work during a leisurely executed makeover lasting three years. We have raised its value by spending say £250,000 to raise value by £600,000, Will we be liable for tax on the difference £350,000?
I presume we can set off all the direct costs. Can I also take a retrospective accumulated reasonable salary for the project management of it all?.