SECOND PROPERTY

peekay · Postby **peekay** » Mon Jul 21, 2003 3:06 pm

I purchased a small one bed flat in Jan 96,lived there for only 6 months and moved on and decided to let.I have recently moved back into the flat April 03.I am now in the process of purchasing a second property,would it be prudent to nominate the flat as my main residence as it has more than doubled in price, and I have had several offers for it.Would this exempt me from possible C.G.T.
Many Thanks,
Paul Kearney

accountant@uktaxshop · Postby **accountant@uktaxshop** » Tue Jul 22, 2003 2:48 am

Paul,

this election will not exempt your from CGT for the whole period. However there are a number of reliefs available to you.

If you have two properties and could live in one of the other an election is required. If you only have one property that you can live in (ie the other is rented out) your PPR will be a matter of fact, and not election.

If you would like me to estimate your CGT liability, please give me a ring.

James Smith
Chartered Accountant
www.uktaxshop.co.uk
01284 764436