How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • Go back-and-forth until satisfied
    Rate the answer you receive.
Ask bigduckontax Your Own Question
bigduckontax
bigduckontax, Accountant
Category: Tax
Satisfied Customers: 7306
Experience:  FCCA FCMA CGMA ACIS
75394688
Type Your Tax Question Here...
bigduckontax is online now

Can you help me? I own a property with my mother jointly

This answer was rated:

Hi can you help me? I own a property with my mother jointly with no morgage. (Property A) i have now purchased a second property on a residential morgage (property B) I owned the property B for 6months, but realised if I name property B as main residence I will lose a lot of CGT on property A.. (purchase for £40,000 now worth £160,000) I did want to move in property B but because of CGT I’m not going to.. but now the Council are try to get me on empty property tax? Can I live between the to property? I really need help with this not sure who to talk to???
Assistant: Have you talked to a tax professional about this?
Customer: no is that who I need to talk to??
Assistant: Anything else you want the Accountant to know before I connect you?
Customer: No thanks just the above

Hello, I am one of the experts on Just Answer and pleased to be able to help you with your question.

 

Simple, within 2 years of buying Property B elect with HMRC for Private Residence Relief (PRR) to be applied to Property A. Whether you move into Property B for CGT purposes is irrelevant. You intended to move anyway so serve notice and the problem of empty properties and Council Tax disappears.

Customer: replied 2 months ago.
Sorry I haven’t explained very well I would like to keep both property’s. But I’m going to elect property A for PRR can I still get round the empty council tax? Because I’m still living in property B at weekends?? I’m ok with the CGT on property B

Just say you are living in Property B and the matter will not raise its ugly head.

Customer: replied 2 months ago.
So if I do that and sell property A in 8 years time?? it still would only be property B that would have CGT? NOT property A?

Correct, PRR would apply to property A.

 

Please be so kind as to rate me before you leave the Just Answer site.

bigduckontax and other Tax Specialists are ready to help you
Customer: replied 2 months ago.
Thank you very much for you’re help, you have been excellent ��

Delighted to have been of assistance.

 

Thank you for your support.