does flipping primary residences help with tax bills

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    does flipping primary residences help with tax bills

    if you have a BTL and plan to sell it should you move in first and make it your primary residence for the shortest period that qualifies ? if you move back to your primary residence and then claim that to be your primary residence again .. what happens when you sell it .. for the period you lived in the other

    ie if you live in your primary residence for 10 years .. but within that period you lived in your BTL for 6 months .. do your end up paying 6 months cgt on your primary residence ?

    #2
    "Qualifies" for what exactly?

    Lettings relief is mostly gone (and in any case was not a retrospectively acting relief).

    So all that happens is time accrued for the actual time it is your one and only ACTUAL primary residence.

    In your first paragraph scenario you will save 1/20th of the CGT if you live there for the final 6 months out of 10 years.

    Your second paragraph scenario - the answer is yes.

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      #3
      my question is .. does hmrc have a time frame where you have made your house your primary residence so it doesn't check re capital gains .. if you own a house for 30 years .. live it in for 10 years then rent for 5 years and then move back in and live in in for another 15 years .. will hrmc be going through your records re capital gains for 5 years ? i suppose if you have notified hrmc of change of primary residence .. this will be flagged up when you goto sell it .. but if you don't notify hrmc will they be flagged up via land registry changes

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        #4
        Where you have more than one residence (i.e. you live in two or more places) you have to confirm to HMRC which one you regard as your primary residence, which can change over time.

        There's no actual time that has to elapse, but HMRC aren't daft - they're aware that moving into a property that was a BTL would allow a landlord to claim another 18 (soon to be 9) month's allowance.

        The scenario you describe is very different and I'd imagine HMRC would take your word for it, unless you aroused their suspicion in some way, in which case they would want some evidence.
        They aren't forensically checking what you tell them.
        Their processes are meant to flag suspicious-looking returns, plus a number of people are selected at random for investigation, but I have no idea what that number is.
        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).

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          #5
          Originally posted by selondon View Post
          my question is .. does hmrc have a time frame where you have made your house your primary residence so it doesn't check re capital gains .. if you own a house for 30 years .. live it in for 10 years then rent for 5 years and then move back in and live in in for another 15 years .. will hrmc be going through your records re capital gains for 5 years ? i suppose if you have notified hrmc of change of primary residence .. this will be flagged up when you goto sell it .. but if you don't notify hrmc will they be flagged up via land registry changes
          What you are saying basically is "How can I best defraud my fellow taxpayers/HMRC". Really???

          Yes they keep detailed information - they have access to council tax records, deposit protection records, all the stuff credit checking companies will see, where your bank account have their registered home address. There are also people who will report you - neighbours, friends, ex tenants....

          Yes you can try it on. If you want to be levied with life-changing fines, a possible prison sentence, and having HMRC conduct detailed auditing on every tax return you submit from now until you die.

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