CGT, moving from PPR to second home

[couplands]

My wife and I bought a second home 3 years ago in the West Country, we spend holidays and other time there.

It is our intention to eventually sell our PPR and retire to the second home. If we subsequently sell the second home after period of time - say two years - are we still liable for CGT, or will the fact it is now our PPR mean not. I am thinking that we may have to pay CGT for the period it was our second home.

Thanks for your help

Simon

[Ian McTernan CTA]

Correct, there will be an element of CGT to pay on the second home at some time in the future, dependent on how long you stay there before selling. The gain over the period of ownership is time apportioned and PPR relief and any other relief is applied on a time basis against this to arrive at the gain left in charge.

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

[couplands]

Ian,

Thanks.

Is there a tax efficent way of managing the move from our PPR to the second home..?

Regards

Simon