Do I need to elect main residence?

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    Do I need to elect main residence?

    I own a house which I live in, and a flat which I rent out. 18 months ago I lived in this flat until I bought the house.

    Do I need to inform the HMRC of which is my primary residence?

    I have completed a tax assessment for the rental income on flat; does this exempt me from having to elect my house as primary residence, since it's now pretty obvious to them that the house is my primary residence?

    #2
    You can only make an election/nomination if you have two (or more) residences.

    Both will qualify for some measure of PPR relief.

    Comment


      #3
      So the flat I rent out is not considered a residence in the eyes of the HMRC? Do I have to inform them it is not a residence, or does the fact that I have made a declaration on the rental income cover this?

      Basically could the HMRC say to me that I own 2 propertries but I didn't tell them which one was my residence? Even though it's obvious since, I've made an income declaration to them on the flat.

      Comment


        #4
        Your residence is a matter of "fact" - i.e. established by behaviour not anything in writing (like your name, as it happens).
        As long as the your residence is the one you want it to be, there's no need of a declaration.

        Some MPs needed a declaration as it wasn't obvious (or convenient) which of their several properties was the one they actually lived in "mainly".
        Most of us don't have that problem.
        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


          #5
          Ed209,

          How can you reside in the flat when it is rented out?

          Comment


            #6
            My point exactly! I read in one of HMRCs documents that if you had more than one property, then you needed to elect one as your main residence within 2 years of buying it.

            So, since I've declared income on the flat, it's pretty clear which property I reside in, without any need to "elect".

            Thanks guys.

            Comment


              #7
              Election is voluntary.

              However, if no Election is made, HMRC will proceed, if necessary, on the factual circumstances.

              Comment

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