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bigduckontax, Accountant
Category: Tax
Satisfied Customers: 8953
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Can you help me? I own a property with my mother jointly

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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 9 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 9 months ago.
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.

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Customer: replied 9 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.