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

Collapse
X
 
  • Filter
  • Time
  • Show
Clear All
new posts

    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

          Latest Activity

          Collapse

          • Capital Gain Tax on main home, but let in the past
            by Gep
            Hi all,
            I'm thinking about selling my flat and trying to workout how much capital gain tax I would have to pay.
            ​​Accordingly to the HMRC website the rate is 28% if you let the property out, but I'm currently living there so I'm not sure.

            I've owned the property for 10 years:...
            18-06-2021, 17:32 PM
          • First time investor to a BTL planning for long future and father retirement
            by Nick constable
            Hello I’m starting to have to plan my fathers retirement and we have a good amount of deposit to invest in a property to rent and I’m trying to find the best way to set this up whether it be as a limited company or as Individual I am thinking more towards limited company because when my father comes...
            18-06-2021, 10:09 AM
          • Reply to First time investor to a BTL planning for long future and father retirement
            by jpkeates
            The first question you should ask yourself is why have I chosen this investment over other forms of investment, including those that would be tax free or designed for pensions?

            And if you don't have an answer, you've not really made a decision.
            18-06-2021, 12:56 PM
          • inherited house - best to sell or rent
            by Wobble1
            Hi all,

            My father sadly passed away in February, I already owned half of his house as tenants in common via my mothers will (passed several years before), although I didn't live there with him. Have my own house nearby. I am sole beneficiary of his will, and as well as everything else,...
            17-06-2021, 20:32 PM
          • Reply to inherited house - best to sell or rent
            by 1600e
            Quite right.
            I was rushing to post as the footy was starting lol!...
            18-06-2021, 09:46 AM
          • Reply to inherited house - best to sell or rent
            by royw
            As there is no mortgage you can make a useful income from it but it certainly isn't hassle free. If you do it yourself it's vital you know what you're doing so you need some landlord training. You are never off duty. If you use an agent you need to make sure they know what they're doing. Anyone can...
            18-06-2021, 07:48 AM
          • Reply to inherited house - best to sell or rent
            by ram
            At the cost of being chastised. ( and not directing my comments to 1600e, but a general statement. )

            Landlords "Let"
            And tenants "Rent"./ rent it.
            ...
            17-06-2021, 22:25 PM
          • Reply to inherited house - best to sell or rent
            by 1600e
            Before you think of renting it, get an EPC (energy performance certificate) and an eicr (electrical installation condition report) carried out and gsc (gas safety certificate). If it's a modernish house you should be ok as regards the EPC but if not bear in mind the government is aiming to get all private...
            17-06-2021, 22:03 PM
          • Reply to inherited house - best to sell or rent
            by ram
            ADVICE -- serious advice.
            Sell the house

            You did not wake up one day and decide you will be a landlord and want to deal with people that dont pay rent and costs you a fortune to get them out. Nor waking up and sayng I realy want to go through that mine field of rules and regulations
            ...
            17-06-2021, 21:41 PM
          • Need CGT help or do i ned an accountant
            by Sara2
            Mother died in 2007 left house to me and my 2 sibs it was family home and i lived in it until 1985 when i had my own house. My brother also lived in house at point mum died and he remained there until 2010 when not being able to sell the property i purchased whole of property by buying brother and...
            13-06-2021, 11:53 AM
          Working...
          X