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taxadvisor.uk
taxadvisor.uk, Chartered Certified Accountant
Category: Tax
Satisfied Customers: 4972
Experience:  FCCA - over 35 years experience as a qualified accountant (UK based Practitioner)
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I own two properties, one was a holiday let but from immediate

Customer Question

I own two properties, one was a holiday let but from immediate effect will no longer be let and I shall use it as another home, my daughters from a previous marriage live within minutes of that home, so I will use it reasonably regularly. I purchased a property in February 2014 which I live in most of the time with my new wife and children. I understand that if I use more than one home I can nominate which will be tax free and I have two years from getting a new home to make the nomination. Can I therefore nominate my other home near to my daughters to be tax free? If so, if that property was sold then will my other property purchased in February 2014 will become my only home, so will that therefore be tax free?
Submitted: 1 year ago.
Category: Tax
Expert:  taxadvisor.uk replied 1 year ago.
Hello and welcome to the site. Thank you for your question.

You are correct in your understanding that for CGT purposes you are allowed up to a period of 24 months to nominate which property is your main residence from the date of acquisition of second property.

You should be mindful of the fact that private residence relief is only available for all the period the property has been your main residence and not total period of ownership.
The final 18 months of ownership always qualifies provided the property has been your main residence at some point during period of ownership.

Property bought in Feb 2014 would qualify for PRR for the period it remains your main residence.

More information on private residence relief is covered in HMRC helpsheet hs283 here (please look at how the relief works)

https://www.gov.uk/government/publications/private-residence-relief-hs283-self-assessment-helpsheet/hs283-private-residence-relief

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.

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