CGT on Property Bought to Live

[jessor]

My friend bought a property for £490,000 about one year before with the intention to make it his family home. This was his first property. He spent £100,000 on rennovation and improvement. Now when he wanted to move into the property, he couldn't find school admission for his children. There is minimum one year waiting period. He now have to sell the property. Current estaimated selling price is £650,000. He neither lived in the property nor rented it out for the last one year. Can PPR be claimed on this property because of his intention to live there? What would the CGT based on the above? He is on higher rate tax band.
Thanks in advance for the contribution.

[Incredulum]

Your "friend" is subject to CGT on the gain.

Assuming
selling fees of 2%, £13k,
acquisition costs of 3% SDLT, £15k plus legal fees of 2k.

The gain is therefore 30k. annual exemption 10k, balance, 20k, subject to tax at 28%.

If he is married, he could transfer (a proportion of) the property so as to benefit from his wife's nil rate band, and indeed if she is a basic rate taxpayer, some of the gain at least would be taxed at 18%.

[skyhilee]

If the friend had nominated this property as his PPR for the period he had owned it, would it still be liable for CGT?

[Incredulum]

Your "friend" never lived there, therefore it was never his residence, therefore he couldn't make a nomination.