Capital Gains on Second Property

[Peter D]

On disposal HMRC will note the actual period of residence is at term and will look further as they are not going to give up up to £40,000 of Letting Relief per owner in additon to granting PPR for the last 36 months. I have seen cases that have been caught out, even at 2 years, they returned to the original address and PPR and LR was denied by HMRC. Also remember that the period you are away exposes your original property to CGT for that absent period. Regards Peter

[arthurv]

Thanks to all for the advice given. From reading the posts I'm now having second thoughts about moving into the 'second property' and nominating this as my main residence. I guess I'll need to bite the bullet and accept liability for a heafty cgt bill. That being the case could anyone please advise on likely cgt liability for my wife and I, and is there anything else we could do to minimise our liabilities ?

[Peter D]

Your present house is your PPR by default you do not need to nominate it. Based on your figure your CGT Bill will be :
9,885 For your wife
11,985 and for you.

I have used your 5K fees number but I would question any repairs as they sound like a revenue item not capital.

Regards Peter