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You can claim private residence relief on property that is your only and main residence. It is your intention to build two houses and move into one of them and make it your main residence. This property would qualify for private residence relief when you sell it in the future.
If you were to move into one and then say in two years moved out and made the second property your main residence, then both properties would qualify for partial private residence relief ( basically the period used as main residence and final 18 months of ownership plus letting relief).
You could not move into one property and put mum and dad in the second property and claim private residence relief on both as you can only have one main residence at any point of time.
More information on private residence relief can be found here
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Thank you for your reply.
It would make no difference whether mum is a dependant due to care needs. There was relief available in the old day and it stopped for any residence acquired after 5 Apr 1988 (page 7 of HS283 attached).
Let me explain what I mean by partial residence relief.
You move into property A on completion and make it your main residence.
Mum and dad move into property B .
You live in property A for say 3 years and then change residence to property B. Mum and dad move into property A.
You sell property A in say end year 6. First three yearswould qualify for private residence relief as you were living there. Final 18 months would also qualify for additional relief.
You are left with 18 months that form chargeable gain forCGT purposes.
As far as property B goes for CGT purposes .. it is now your main residence from the timeyou moved in from property A to the time you decide to sell it.
Provided mum and dad are paying rent on property B, then this property would qualify for letting relief (page 6 of HS283).
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