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TaxRobin
TaxRobin, Tax Consultant
Category: Tax
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Experience:  International tax
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In a case where the joint owners of two residential

Resolved Question:

In a case where the joint owners of two residential properties have not nominated either as their main residence within the two year deadline after the simultaneous purchase of both properties, how long must the joint owners plan to reside at the higher value property for it to be regarded by HMRC as a main residence and therefore exempt from Capital Gains Tax liabilities on sale?
In this case, the two properties have approximate market values of £200,000 and £570,000. The joint owners currently live in the lower value property effectively as their main residence, as it is convenient for their work location. They bought the higher value property for their own occasional use and their adult children's use, more convenient for their work location.
The joint owners are now planning to sell the higher value property but at the same time to minimise CGT liability.
What do you advise?
Submitted: 1 year ago.
Category: Tax
Expert:  TaxRobin replied 1 year ago.

Hello

If you do not make a nomination, the question of which is your main residence will be determined on the facts.

This will normally depend on a combination of factors including which one you spend more time in, proximity to work and children’s school and which address is used for bills, doctor’s registration, car registration etc. However if you make an election as to which is your main residence you are perfectly free to choose any property provided it is used as a residence by you.

Because you did not define which property is your main home , HMRC would look at the full time of ownership and where you typically had as your main address.

If the lower valued property has been used then they would need to move into the higher valued property for longer than you have lived in the lower.

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