Trying to Understand Rules and/or Benefits of Nominating Main Residence

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    Trying to Understand Rules and/or Benefits of Nominating Main Residence

    Advice from someone with some experience of nominating main residence would be appreciated, or pointers in the right direction of where to get correct advice.

    At the moment I live in one house. I have lived here about 2 and a half years now. My former home of 25 years is occupied by tenants who were originally on a fixed term of 12 months. They don't want to leave, have spent about the last 12 months waiting for them to go. Eviction is underway but haven't had court date yet, I can still see this taking time. I had expected to move back in by last spring.

    Is it possible that I can nominate my former home as my main residence, even though it is rented out? Once the tenants have moved out, I will be moving back in. I won't be letting out the current home and I will use it as my holiday home for a while.

    1) If I can nominate my former home, is there a benefit?
    2) Will this stop the CGT tax calculator? All the time these tenants are sitting in my former home CGT is accruing at quite a rate.

    Thank you.

    #2
    No that would be fraud.

    Comment


      #3
      As a start point, you have to be genuinely resident in more than one property, and you aren't and won't be.

      You accrue CGT at the same speed as you accrue the gain being taxed.
      Focus on the gain, not the tax on it.
      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


        #4
        The benefit of having a "main residence" is the capital gain achieved during the residence period is exempt from cgt ( capital gains tax ).

        If your previous house is rented out, then your current "main residence" must be at the second property. At any one time, you can only have one main residence.

        If you return to the old house and live in both properties, you must to serve notice within 2 years that your main residence is at the old address .

        Comment


          #5
          Gordon999,

          Thank you for explaining, I understand now.

          Comment

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