Principle Private Residence (PPR)

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    Principle Private Residence (PPR)

    Hi,

    I have two properties which I have owned for a number of yours. One of these properties has been let out and the other one has been empty after being let. I have never ever lived in these properties as I stayed with my parents.

    I would like to move into the empty property and do it up then sell it but I dont want to incur CGT. I read some where that to nominate a home as your PPR you have to notify the tax office within 2 years of purchasing them.

    I have not done this. I would like to know what I can do to avoid CGT by moving into the empty house.

    Thanks,

    JAS

    #2
    Well, there's nothing stopping you moving in now! That will mitigate some of the tax, but admittedly not much if you plan to sell soon.

    There are other exemptions ie working away from home, but I doubt these apply.

    Depending on how long you have owed the properties, other reliefs may apply as well.

    I'm afraid, without more information I can't help......
    Steve Sims

    Yardleystar Accountancy
    0870 242 1047

    Email: ssims@yardleystar.co.uk

    Comment


      #3
      You may not not get private residence relief if you spend money on it in order to realise a gain on its disposal. If so, you will also not get the benefit of any lettings relief.

      Subject to this, you will have exempt periods for the duartion of the period for which you actually use it as your only or main residence or the final 3 years whichever is the longer. All other period of ownership is considered chargeable period.

      Your final gain is time apportioned between exempt periods and chargeable periods. Any gain apportioned to chargeable periods is further reduced by lettings relief of upto a maximum of £40,000, taper relief depending on the length of ownership (currently maximum of 30% if bought before 17 March 1998), and annual exemption (currently £8,500).
      Private advice is available for a fee by sending a private message.

      Comment

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