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Where Taxpayers and Advisers Meet

Sole property always main residence

ianinini
Posts:3
Joined:Wed Aug 06, 2008 3:40 pm

Postby ianinini » Sat Jul 22, 2006 1:16 pm

Hi all,

I am currently letting my only property (previously my home). I spent one year abroad (gap year), and returned to England and now live in rented acommodation.

Please can someone tell me if I will be liable for CGT on the property after the three years?

I was hoping that by declaring my property as my main residence I would be exempt? But I don't live there. So I guess that's a period of abscence...

Hope you can help,
Thanks,
Ian.

al_eebee
Posts:899
Joined:Wed Aug 06, 2008 3:40 pm

Postby al_eebee » Mon Jul 24, 2006 11:47 pm

Firstly if you are letting it you cannot elect for the property as it is not available to you as a residence.

As things stand you will get the period that you lived in the property plus the final three years as exempt.

If you were to let the property for more than three years there is a further "letting" relief of the lesser of the PPR exempt amount and £40,000. Note that proportion of the gain to which this relief applies is the proportion of any period of letting that is not otherwise exempt. So if you sold after 4 years of letting the proportion of the gain to which this relief would apply would be 1/total years owned not 4/total years owned.

If you were to move back into the property at some time in the future and take it as your main residence again then there is a further exempt addition of up to 3 years - see TCGA s223(3)(a). This allows for a period (or periods) of up to 3 years absence in total from the property to be treated as exempt SO LONG AS "both before and after the period there was a time when the dwelling-house was the individualÂ’s only or main residence."

ianinini
Posts:3
Joined:Wed Aug 06, 2008 3:40 pm

Postby ianinini » Wed Aug 02, 2006 11:30 am

Thanks very much for your reply.

Please can you tell me where I can get hold of the document TCGA s223(3)(a).

Many thanks,
Ian.


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