jinny Posted October 23, 2006 Report Share Posted October 23, 2006 I am considering moving from my 'main residence' into a previously let property I have as its bigger. I'm not sure wether I will settle there as its in a noisy part of town so i intend to short let my home in the mean time. I will eventually need to sell one of the properties. I have owned the property since April 2004 (03/04 tax year) Does anyone know where I stand with Capital Gains if i dont settle and decide to sell the property and move back into the original? Ive read up on what I can but its so confusing! Jinny Link to comment Share on other sites More sharing options...
plym77 Posted October 26, 2006 Report Share Posted October 26, 2006 Hi Jinny You can only have one PPR at a time. The property you have been living in will have had PPR to date. If you decide to move in to the 'Let Property - Property A' (which I assume you own) and then let your 'Main Residence- Property B ', then I would suggest that you consider making an election for Property A to become your PPR. You can do this within 2 years of the property becoming newly available (ie. coming out of the letting market for example). This is done by letter to HM Revenue and Customs. Property B (which was your main res but now let) - Available PPR Relief would be actual PPR occupation, plus the last three years of ownership. If the property is let at some point you may also be due lettings relief. Also, after 3 years of ownership Taper Relief will also start to reduce a potential gain. Property A (was a let property, now PPR) - Available PPR relief - actual occupation (so assuming you move in now, and elect, you will start to accrue PPR), plus last 3 years of ownership (which could be relevant if you only temporarily elect this property as your PPR), plus again lettings relief and possible taper relief. Whether you continue to have Property A or B as your elected PPR really does depend and I would suggest that actual computations are prepared. If you would like me to look at your individual case, please do email me on sherena.glanton@horwath.co.uk for a quote. In the meantime, I hope the above information helps Regards Sherena Link to comment Share on other sites More sharing options...
jinny Posted October 26, 2006 Author Report Share Posted October 26, 2006 Thanks! That has cleared a few things up. Jinny Link to comment Share on other sites More sharing options...
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