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Sam
Sam, Accountant
Category: Tax
Satisfied Customers: 13943
Experience:  26 HMRC expertise, PAYE, Self Assessment ,Residency, Rental Income, Capital Gains, CIS ask for Sam Tax
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I currently own two houses House (a) has been my "Main Residence

Resolved Question:

I currently own two houses House (a) has been my "Main Residence " for 6 years- two years ago I bought a second house to be nearer to Parents in law for care duties ,we are now living mostly in house (B) so I have recently nominated /Changed my "Main Residence" to house (B) -I am currently decorating my house (A) and will be selling it in a few months ,how do I deal with capital gains tax . I still use the house a couple of days a week and effectivly "moved out" a month ago at which time I established a value on the house with an estate agent .
Submitted: 1 year ago.
Category: Tax
Expert:  Sam replied 1 year ago.
Hi Thanks for your question - I am Sam and I am one of the Uk tax experts From the moment you moved into property B to be closer to parents - this became your main residence so there was no need to elect this as so.So would you explain why you felt there was a need to make an election, Please also advsie which house you had as main base - so registered for the doctors and dentists and hand had mail for banks/credit cards etc sent to - You then say you in effect only moved out a month ago from Property A - so please do expand why you feel Property A remained your main residence.Did either Property A or B ever get let out to tenants? Will this be the first time Property A would have been put up for sale? I can then advsie on the capital gain position ThanksSam
Customer: replied 1 year ago.
I "Changed" my address with my doctor /accountant/ bank etc a month ago as we found ourselves in "House b " more often than in house "A"House "A" has never been let
House "A" has never been on the market for sale previouslyI have lived in house (a) since 2009 in 2013 I bought the house (b) and still mainly used house (a )as our home, recently we find ourselves in house (B) more often so I decided to sell house "A" and move in to house "B"
Expert:  Sam replied 1 year ago.
Hi Thanks for your response and the information asked for. Then as long as Property A is sold within 18 months of it ceasing to be your main residence (so 17 months remaining) then you will have a NIL capital gain, as the time you lived there plus up to the last 18 months of ownership fall within the private residence relief rules - so no capital gain tax If you sell after 18 months of moving out, then there will be a capital gain consideration Link here to verify this https://www.gov.uk/hmrc-internal-manuals/capital-gains-manual/cg64985 Just be mindful of the fact there will be a capital gain consideration of the sale of Proeprty B as it was NOT treated as your main residence until one month ago Do let me know if I can assist further, but it would be appreciated if you could rate me for the level of service I have provided ThanksSam
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