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Ask Your Own Question, Chartered Certified Accountant
Category: Tax
Satisfied Customers: 5115
Experience:  FCCA - over 35 years experience as a qualified accountant (UK based Practitioner)
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I live in London flat value £500K. Moving to Manchester with

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I live in London flat value £500K. Moving to Manchester with work. Thinking of changing my £300K mortgage to a buy to let and then buying a new flat in Manchester to live in.
What are capital gains tax implications of property in London.
and welcome to the site. Thank you question.

Please advise
Is it your intention to
- retain the flat in London once to move to Manchester
- make Manchester flat your main residence

Many thanks
Customer: replied 3 years ago.

Yes retain the flat in London

and live in manchester - so that would make manchester my main residence

Sean, thank you prompt reply.

Gain from sale of flat in London would be chargeable to capital gains tax. You would have reliefs against the gain as follows:

- period the flat has been your main residence would be covered in full by principal private residence relief
- additional relief 18 months of ownership once you move out of the property, as it would have been your main residence at some point during the period of ownership
- letting relief up to a maximum fo £40k because it was your private residence and your main residence before you move out

More information on private reidence relief is covered on HMRC helpsheet hs283 here

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. and other Tax Specialists are ready to help you
I thank you my answer.

Good luck.