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When you acquired your crash pad did you elect as to which of your residences Private Residence Relief (PRR) would apply?
Your Capital Gains Tax (CGT) liability will be decided by HMRC on the facts and will inevitably be the original one which is entitled to PRR. On sale there would be CGT due, but PRR is at 100% so there will be no tax. When you sell the pad though CGT will apply. You have 2 years from the change in property mix to make the election so it is a question of which residence is likely to make the most gain on disposal. Mortgages are irrelevant in CGT computations.
I do hope that you have found my reply of assistance.
You do not need to, the selection will happen automatically on the facts. You pay CGT on all gains made from the sale of landed property, but if it is your sole or main domestic residence then PRR applies. CGT is charged at 18% or 28% or a combination of the two rates depending on your income including the gain in the tax year of sale. You have a non cumulative Annual Exempt Amount (AEA) of 11.3K to offset this gain, 11.7K next tax year.
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1) You can select within 2 years of any property mix change.
3) You can apply to the Stamp Office for a refund of the surcharge.
Correct, but of course it all depends on the possible gain on each property. It's a finger to the wind job!
You can rest assured that that will happen automatically. You could elect if you wish, belt and braces!