CGT for rental property once PPR

[Doctor]

I would value some advice from more experienced members of this forum. I have done some research myself i.e reading the rather complicated inland revenue documents and just want to clarify some points.

I bought property A in Dec 2000 for £47,000 and it was my PPR until Dec 2003. It should now be worth about £120,000.

I bought property B in Dec 2003 and moved in there since then.

Property A is now being rented out.

(1) From what I gather since property A was my PPR for 3 years, I should be able to rent it out until Dec 2006 and not have to pay CGTÂ…..i.e the last 3 years of ownership business. Am I right?

(2) I have not nominated my PPR yet with the inland revenue. I have two years, correct? Would the best move now be to nominate property B as my PPR?

Cheers
PM

[Ian McTernan CTA]

Thanks for sending this query to my email address and I assume others as well as posting here.

1. correct.
2. correct, although you do not need to make an election in this case as it is usually only where you are using two houses simultaneously that you may need the election. Property B is your PPR as the other house is not available for your use.

3. I do not have a branch near Newcastle, but one of the other contributors may be able to help. Anyone have a contact in Newcastle?

Ian McTernan CTA
McTernan Associates Ltd
Chartered Tax Advisers
ian@imcternan.com