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TonyTax, Tax Consultant
Category: Tax
Satisfied Customers: 15977
Experience:  Inc Tax, CGT, Corp Tax, IHT, VAT.
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We have lived on a houseboat on our own mooring. We bought a flat 17yrs ago as a

Customer Question

We have lived on a houseboat for 30yrs on our own mooring. We bought a flat 17yrs ago as a second home. We have just started renting that for the first time. We are now 83. We never nominated either for capital gains exemption through ignorance. Can we automatically get tax exemption on our houseboat if we wish to sell it but continue to rent our other residence out? If not, how would we appeal against not having nominated at the time?
Submitted: 2 years ago.
Category: Tax
Expert:  TonyTax replied 2 years ago.
Hi. Let me take a look at this and I'll get back to you in a bit.
Customer: replied 2 years ago.
Expert:  TonyTax replied 2 years ago.
Hi again.

You have missed the opportunity to make an election for one of the two homes to be automatically treated as your main home as such an election has to be made within two years of a change in the combination of homes that you have available to you.

In the absence of an election, the matter of which of the properties is your main home is based on the facts. Many factors can be taken into account in determining which is the main home when there is more than one. These include where you spend most of your time, where your post is delivered, which is the centre of your everyday life etc. Take a look here and here for more information.

From the information you have provided, I cannot say which was your main home between the time you bought the flat and when it was let. A property cannot be your main home when it is let.  The houseboat would have been your main home before the flat was bought.

I hope this helps bit let me know if you have any further questions.