moving into BTL but sale of own home fallen through

[dano]

Will I be looked at by the Inland REvenue - I thought I had sold my own home and had given all my tenants notice in my btl property. The sale has now fallen through but I am ready to move into the btl - how will the Inland REvenue regard me living there when I still own my own home? And what if I want to sell the btl in the near future?

[James Smith]

Dano,

Regarding your current home, assuming you have always lived in the property as your main residence you actually have plenty of time to sell this, three whole years from the date you move out. So this is OK.

Regarding the BTL property living in it can only be to your advantage from a CGT point of view. If you end up being there for say 6-12 months it may become your "principle private residence" and open up a number of useful capital tax reliefÂ’s when you come to sell the property. Obviously it is impossible to be more than general with the information provided, but this really shouldnÂ’t cause you any problem with the IR unless you try ot claim mortgage interest relief for the period you are living there.

If you need some help understanding the tax implications on your BTL property this is an area I specialise in.

Regards,

James Smith
Chartered Accountant
www.jamesesmith.co.uk
01284 764436