Chat living in btl

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  • Chat living in btl

    Hi I bought a btl in 2013 but after the sale went through we changed our plans and moved into it. Mainly because my wife was expecting again and we couldn't get planning to extend our residential. The btl was perfect to extend, we have been in the house ever since. All bills. Cars. Etc have been registered at the address from the start. But now we are considering selling I haven't nominated the btl as main residence how do I go about nominating the btl and proving we have never let it.

  • #2
    Sorry this is obviously to avoid cgt for the time we were there.

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    • #3
      Did you buy it with btl mortgage? If so the lender may see this as fraud

      Comment


      • #4
        Yes. But the lender won't know and I'm sure they would prefer us being in it than it being rented that's why btl mortgages are more expensive. Thanks for your input.

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        • #5
          Could probably have saved yourselves money going back to the mortgage lender and getting a new deal. Anyway - what happened to your residential? You have 2 years to nominate a main residence when ownership changes. You didnt do that and if you had previously nominated your residential as your main home you may now pay more tax than you need.

          So - did you nominate your previous home as your main residence at any stage?

          Do you currently own more than one property?

          If the answer to the last question is yes have you bought any property in the last two years?

          Comment


          • #6
            Have you been keeping 2 homes for your own use and , all utility and council tax bills for both properties under your name ?

            Or if not and the other main residence has been let out since 2013 and you have declared the rental income in your tax return, you should be OK to claim the current property as your main residence.

            Comment


            • #7
              Thanks for the replies.
              We originally bought the btl off parents who were going to be evicted for mortgage arrears.

              They lived with us for a few months while we spruced up the residential ready for sale but it didn't sell.
              They moved into the residential nearly 3 years ago and pay no rent.
              I haven't nominated any of the properties. The plan is to sell both and buy 1 big house for us all.
              We couldn't sell the residential 3 years ago as we would have been left in negative equity.
              I have all bills etc confirming that the btl is our main residence.
              And I may be liable for some tax on the residential cgt (but it's only gone up by 15_20k)
              We bought the residential 5 years prior to the btl as a new build.
              So how do I inform hmrc that I've been at the btl since the start. Not just 2 years.

              Comment


              • #8
                Just to confirm these are the only properties I own.

                Comment


                • #9
                  Originally posted by kharri99 View Post
                  So how do I inform hmrc that I've been at the btl since the start. Not just 2 years.
                  You don't, it has been your PPR therefore no CGT to pay or declare. If they should raise an investigation, then you (presumably) have the required proof.

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                  • #10
                    Thanks for the reply. So should I now inform them that it's my main residence now. Or just sell and wait for solicitor to sort it out and provide the evidence at that point.

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                    • #11
                      You simply make sure your solicitor doesn't declare or pay any CGT.
                      And that your lender doesn't find out and blacklist you for fraud, which could end any chance of a mortgage in future,
                      When I post, I am expressing an opinion - feel free to disagree, I have been wrong before.
                      Please don't act on my suggestions without checking with a grown-up (ideally some kind of expert).

                      Comment


                      • #12
                        Thankyou for all the replies that's made things a lot clearer.

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                        • #13
                          If you didnt nominate a property then exemption is based on which one you actually lived in - so as you have plenty of evidence you have no problem over CGT on the sale of the property you have lived in.

                          You will be liable for CGT on the other residence, no relief now for a property used by elderly relatives (unless it was bought a very long time back). If jointly owned any profit is split between you and your wife and may be less than your annual exemption, from what you say. The Annual exempt amount is currently £11,300 so £22600 if jointly owned.

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                          • #14
                            Why didn't you just help your parents with their arrears rather than allow them to live in your house rent free?

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                            • #15
                              They were at the end of the term of there mortgage it had already been extended 2 years.
                              Both had retired so had no income they had an interest only mortgage.
                              Also they didnt buy the freehold so property was going down in value as the years on the lease eroded.

                              They were worried house may be sold at auction and they would end up with a bill at the end.

                              Comment

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