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Where Taxpayers and Advisers Meet

TCGA 1992 S222 (5) election

Joined:Mon Feb 13, 2017 10:09 am
TCGA 1992 S222 (5) election

Postby someone » Tue May 04, 2021 1:02 pm

I understood that making an CGT election in favour of one property had no effect other than to deem that property as your PPR for CGT.

My wife and I own two neighbouring properties (two small flats). It's not at all obvious "on the facts" which is our primary residence. We use them as someone would normally use a two bed, two bath flat.

In order to try to avoid any issues with SDLT and deciding if it's a main home replacement if/when we decide to move (we have no plans currently), we've made one flat our "main address" for (almost) everything while the other flat gets mostly junk mail and the occasional piece of (rare) post from something where I've forgotten to update my address.

We recently (september last year) made a back dated CGT election in favour of the property that isn't our main address. Imagine my surprise to receive my notice to complete a tax return to that address instead of the main address.

Have I misunderstood or have HMRC messed up in changing my postal address?

Joined:Mon Mar 11, 2019 4:22 pm

Re: TCGA 1992 S222 (5) election

Postby Jholm » Tue May 04, 2021 3:00 pm

I would not be in the least bit surprised if they have made an error.

Whilst a badly-worded letter might read as though you are looking to update your postal address rather than elect a main residence for CGT purposes, your wording and insight suggests to me this is not the case.

I would personally give them a quick call to get to the bottom of it quicker.

0300 200 3300

Joined:Mon Feb 13, 2017 10:09 am

Re: TCGA 1992 S222 (5) election

Postby someone » Wed May 05, 2021 6:20 am

Many thanks. Can't say I relish the thought of being stuck in an HMRC telephone queue but I'll try and find the time this week!

Joined:Thu Dec 03, 2009 5:35 pm

Re: TCGA 1992 S222 (5) election

Postby Incredulum » Fri Jun 11, 2021 4:49 pm

It does seem peculiar that the mere fact of knocking a door between the two flats would allow them to become a single PPR, whereas using them as you currently do means that you have a PPR and an 'other' flat.

There's some good reading here on Honour v Norris. if the link works for you.

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