Electing a Property as main residence

[Markbing]

I have just sold my main residence. I also own jointly with my sister another property that my Mum currently lives in (rent free). I am working in London and living with a friend in his property during the week (paying nominal rent) and will (mostly but not always) stay at the property with my Mum at weekends. All my mail goes to my London address.

Can I elect the property I own with my sister as my main residence to reduce the CGT impact when I sell it until such time as I buy another property (which may not be for years). The aim is that my Mother stays in the property I own with my sister.

If I can how do I go about electing my main residence?

[Nigel Lord]

Markbing

You do not state whether you used the jointly owned property as a main residence before you sold your other main residence. On the assumption that you did not, you should make a Principal Private Residence (PPR) election to establish the jointly owned property as you main residence from the date that the previous property was sold. (Your friend's property could be a main residence, if rented, but there would be no advantage to make a PPR election here).

The PPR election must be made within two years of a second main residence becoming available.

If you require any further assistance please do not hesitate to contact us, and we will be happy to act on your behalf.

Nigel Lord
Lord Associates
Taxation & Business Consultants
Caxton House
Old Station Road
Loughton
Essex, IG10 4PE
020 8418 9101 & 07769 931852
mail@lordassociates.co.uk