This site uses cookies. By continuing to browse the site you are agreeing to our use of cookies. To find out more about cookies on this website and how to delete cookies, see our Cookie Policy.
Analytics

Tools which collect anonymous data to enable us to see how visitors use our site and how it performs. We use this to improve our products, services and user experience.

Essential

Tools that enable essential services and functionality, including identity verification, service continuity and site security.

Where Taxpayers and Advisers Meet

nomination of PPR

RED
Posts:10
Joined:Wed Aug 06, 2008 3:05 pm

Postby RED » Tue Sep 23, 2003 1:40 am

Hello

Trying to work this one out.

I have looked on yhe IR web site.

In feb I owned House 1 and 2 and got married, but we didn't move in together.

in may I bought house 3 and my wife moved in to it.

In Jul the sale of house 1 'finaly !' completed and I moved in to house 2. (I bought house 2 in the previouse sep and renovated it).

Now we are married I believe we need to nominate a house as PPR between us.

On the IR web site all reference is made to a married couple that live together. does it make a difference that we dont? (I intend to move into house 3 when we have extended it (we both have children from previous partners))and also does it matter that I own both properties and the gain wont affect her ( she was renting previously)?
Can I just make the nomination myself ?

Lots of questions !!! but I only need one answer !
Thanks for any help.

Richard

RED
Posts:10
Joined:Wed Aug 06, 2008 3:05 pm

Postby RED » Tue Sep 23, 2003 1:46 am

I appears that becuase I own both properties, only I have to make the nomination.

RED
Posts:10
Joined:Wed Aug 06, 2008 3:05 pm

Postby RED » Tue Sep 23, 2003 1:56 am

Just a thought - shouldn't my solicitor have informed me that I need to nominate a property when she did the convayancing ? If I hadn't have found out it could have cost me alot of money.

Nigel Lord
Posts:518
Joined:Wed Aug 06, 2008 2:18 pm

Postby Nigel Lord » Tue Sep 23, 2003 2:00 am

Richard

I have already answered your query - see "3 houses" posting below.

I reproduce it here for ease of reference:


House 1 is covered by Principal Private Residence (PPR) Relief for the period that you lived there and the last 36 months of ownwership, so there is no CGT.

House 2 will potentially qualify for PPR Relief from the date of acquisition as you renovated it and moved in within 12 months.

House 3 will potentially qualify for PPR Relief (other than the first few weeks of ownership, as your wife has used it as her main residence.

However, married couples can only have one PPR between them.

Therefore, to maximise your entitlement to relief, you and you wife will need to make a PPR election within 2 years of first having 2 residences available. In your case this would be by September 2004. It will probably be advantageous to then vary the election depending on the gain profile and your future intentions.

Without knowing the market values and you intentions it is not possible to provide definitive advice.

Please refer to me if you require assistance in making the elections.

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

Nigel Lord
Posts:518
Joined:Wed Aug 06, 2008 2:18 pm

Postby Nigel Lord » Tue Sep 23, 2003 2:01 am

Richard

I would add that it is would be most unlikely that your conveyancing solicitor would provide you with advice on PPR elections unless you specifically requested it.

Nigel Lord

RED
Posts:10
Joined:Wed Aug 06, 2008 3:05 pm

Postby RED » Tue Sep 23, 2003 2:13 am

Thank you Nigel

It was your answer yesterday that got me looking into it on the IR web sight.
You suggested that we both need to make an election.
The IR web site seems to suggest that only I need to make the election as I alone own the properties and she owns none. Or am I reading it wrong ?
See Ref CG64526

Richard

Nigel Lord
Posts:518
Joined:Wed Aug 06, 2008 2:18 pm

Postby Nigel Lord » Tue Sep 23, 2003 2:20 am

Richard

You are absolutely correct. If you are the only (beneficial) owner, only one election is required.

Nigel

RED
Posts:10
Joined:Wed Aug 06, 2008 3:05 pm

Postby RED » Tue Sep 23, 2003 2:28 am

Nigel

There you go again (benificial) ! just when I thought I had it clear in my mind ;-)

Are the IR approachable and fair ?
Should I ask them what to do, or is it always best to go throught an adviser / accountant such as yourself or similar ?

Richard

Nigel Lord
Posts:518
Joined:Wed Aug 06, 2008 2:18 pm

Postby Nigel Lord » Tue Sep 23, 2003 2:38 am

Richard

Do not worry about the term beneficial. There is a distinction between legal title and beneficial entitlement that is relevant for tax, but probably does not affect you.

The cost of implementing the PPR election(s) would be £150-£200. The Revenue are approachable and fair. I would not like to comment on whether they would be able to give you the advice you require, but they certainly do not provide a tax planning service.

Please call me if you need the elections preparing on your behalf.

Nigel Lord


Return to “Property Taxation”