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Where Taxpayers and Advisers Meet

Change of use

Anthonym
Posts:2
Joined:Sat Feb 06, 2016 2:45 pm
Change of use

Postby Anthonym » Tue Feb 21, 2017 3:01 pm

Really struggling to get an answer on this, hope someone can help. We have owned a semi detached 1930's house since the early nineties, it' has been split into two flats since 1960. we purchased both flats over twenty years ago, living in one for a number of years whilst renting out the other to date, and currently rent out the other. We no longer live there but are thinking of selling our current house and moving back to the 1930's house converting it back to it's original state and living in it as our only residence. The question is: if we do this will be exempt from capital gains tax if we sell in years to come - the property will have gone up in value from approx 70k of what we paid to around 180k at current value. Your advice will be much appreciated.

pawncob
Posts:5090
Joined:Wed Aug 06, 2008 4:06 pm
Location:West Sussex

Re: Change of use

Postby pawncob » Wed Feb 22, 2017 5:33 pm

HMRC don't keep records of when a house changes occupancy, they rely entirely on tax payers' honesty. If you re-occupy the house and live there for ten years before you sell it, HMRC won't know about it. Are you planning on occupying both flats?
With a pinch of salt take what I say, but don't exceed your RDA


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