A flag to the Revenue

[capital]

Would buying a second property before disposing of the first (PPR) be an indicator to the revenue and increase the chances over and above a random CGT enquiry.

[wamstax]

Not sure where you are coming from here unless you are doing things a bit underhand (which is what some devious mind might think).I will refrain from airing the possibilities in case it encourages somebody doing something to evade tax etc.

Inevitably the time gap between purchase of number 2 property and the sale of property 1 might give rise to the question of possible letting. However as property 1 was your PPR and if it was then let out your last 36 months of property capital gain would be exempt anyway.

If I am missing something please let me know and will see if can elaborate
regards
bill@wamstaxltd.com

[capital]

Not underhandedness but a bit of stupidity on my part. I acquired the property seven years ago and shortly after purchase allowed a very good friend of my partner to stay there temporarily whilst I was abroad for eight weeks. She registerd himself for council tax in my absence. I returned and took up residence and we had the arrangement that she paid the council tax (peppercorn rent effectively)and bills (although the bills were in my name) Fact is, the arrangement suited me,as I was often away on business, and herself too, and she stayed almost two years before marrying and moving to Australia. I should have amended the council tax but stupidly left it in her name. I have bought a second property (buy to let with my partner) and am considering selling this my PPR to help clear the mortgage. I am concerned about the implications of the council tax and the Revenue suspicions on possible investigation. So much so that am considering renting it for three years which would add to my years of residence if the revenue did take a dim view. I am very good at advising others on tax matters and can't beieve I have been so stupid.

[wamstax]

Well the question is not whether I believe you but whether HMRC will believe you when you tell them it all in 3 years time having rented it out to somehow increase your "years of residence".My only question here is where you have been staying with your partner for the last few years... HMRC might wonder if you've also let the property out to somebody else during the period since your last tenant's departure to Australia.
Basically however if the facts you lay out are complete and correct then if you have always been staying in the property right up to the date of its disposal - apart from 8 weeks - then it would be your PPR and therefore exempt from CGT anyway. I think I would be watching the advice you're giving others if what you have alid out here is complete as there are one or two wee gaps missing - including where else you and your partner have been factually living and if you made any valid election to elect for your PPR - or whether HMRC would have the ability to nominate another for you.
regards
bill@wamstaxltd.com

[wamstax]

you also will have to watch the gender of your partners very good friend -"She registerd himself for council tax" a small detail but makes people think

[capital]

Bill a very good pickup and as I am accident prone please wish me luck. In fact for the last three months of her stay I let her partner stay with her and this may have influenced the typological error. My partner has a child by another and we keep a certain separation and stay weekends so no election was considered. Thanks for your input and humour. I am tempted to sell and offer myself as a possible lamb to slaughter, as renting is difficult with a troublesome noisy neighbour below (heavy bass)who makes me tiptoe on slippers on my "noisy" wooden flooring, citing me as a nuisance.

Bill I have looked up factually living - it was your sole mistake, not touche for mine but I feel less of a fool for pointing it out.

Regards and thanks for your help

[capital]

Decision... Chatted things over with my partner last evening and all considered, including good advice on here, I have decided to continue my residence and put off the decision to sell the property for at least two years. We will change the loan on the buy to let property from flexible to fixed.
I have made errors in the past but am pleased to say I look far more at consequences and have learned a lot since joining this website, and reading Q&A's, even to the extent of advising friends.

Moral...every action however seemingly innocent can have its consequence