If you do have two properties then it is very important to let HMRC (HM Revenue and Customs) know as part of your CGT (Capital Gains Tax) planning.
You probably know that your main residence is exempt from CGT. You may not have been aware of a couple of other useful pieces of information.
- Firstly if you have more than one property that is “owned and available” then you can specify any one of them as the main residence as long as you provide evidence that you have used it as a residence (e.g. Council Tax payments.
- Secondly you may be able to gain special CGT property relief because HMRC will count the last 3 years of ownership as though it was main residence even if it wasn’t, at the point of disposal.
If you don’t make HMRC properly aware in a timely manner then they can choose to ignore subsequent claims for main residence relief when you come to sell a property.
CGT on property can become complicated if you have to switch main residence status frequently becuase of, say, work committments or you own rental properties.
If you need advice on Capital Gains Tax issues then call us today on 01384 1384 235549 for a free initial consultation with one of our experts.