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Where Taxpayers and Advisers Meet

am i liable for CGT

Posts: 4280
Joined: Wed Aug 06, 2008 4:06 pm
Location: West Sussex

Re: am i liable for CGT

Postby pawncob » Fri Dec 21, 2018 11:57 am

You can't avoid CGT by occupying the property, you can only reduce it. Occupation is determined by the quality not the time span. The time span only determines the ratio of the exempt gain.
With a pinch of salt take what I say, but don't exceed your RDA

Posts: 772
Joined: Fri May 16, 2014 3:47 pm

Re: am i liable for CGT

Postby AGoodman » Fri Dec 21, 2018 5:54 pm

The precedents suggest you need to move in as a permanent home. There is no time limit but, essentially, if you are moving in for just long enough to receive tax relief, that is unlikely to meet the criteria. The main points are:

(a) you have to make it your home - i.e. move in your possessions, change all your registered addresses to the address and live there with a degree of permanence; and
(b) you are unlikely to ever get 100% PPR as you cannot claim it for the period when you did not live there.

The only exception to (b) is the relief under s226(8) TCGA 1992 [as mentioned above] but to qualify for this you must have lived in a property that was "job-related" i.e. it was a requirement and necessary part of your job that you lived in that particular property).

Posts: 772
Joined: Fri May 16, 2014 3:47 pm

Re: am i liable for CGT

Postby AGoodman » Fri Dec 21, 2018 8:06 pm

There is no fixed time limit but you have to live there with a degree of permanence. Essentially, if you move in with the intent of staying there just long enough to attract PPR relief, it is questionable whether you will meet the criteria. If HMRC see that you moved in for a relatively short period, they may ask you to explain the reasons for doing so.The other important point is that you have to move in properly with all your possessions and register it as your address with all the usual bodies.

The main point is that moving in now will still not mean that you get relief for the period 2012-2018. You were not in occupation then and so the gain would be split between your time in (attracting relief) and out (not attracting relief).

The only way you could get relief for 2012-18 is mentioned above and would apply if you had to live in other accommodation as a necessary condition of your employment - e.g. you could not perform the role unless you lived on site.

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