CGT private residence exemption time limit

[wheatleytax]

I am UK tax resident, with (most recent) UK property owned only since 2017 but with an overseas holiday home owned since 2004.
The overseas property was occupied for less than 90 days in 2017-18 year, it was occupied for over 90 days in the 2018-19, but occupied for less than 90 days in the 2019-20 tax year.
Did the 2 year period for making any PPR election commence at the point in the 2018-19 tax year only when the 90 day limit was exceeded?

[bd6759]

What 90 day limit?

[wheatleytax]

TCGA Section 222B - introduced by Finance Act 2015

[bd6759]

I think S222(6A) disapplies any effect of s222B. So the 2 year time limit will have started in 2017.

[maths]

The "holiday home" must qualify as a residence and continue to so qualify post 2017 in order for the necessity of giving Notice to HMRC which of the two properties qualifies as the main residence. The fact that the overseas property may for a tax year not be treated as occupied as a residence [s222B] does not mean the property is not a residence.

Thus, if the holiday home was a residence pre 2017 and continued to be so thereafter the fact that s222B applied to 17/18 does not mean that the property was not a residence.

Accordingly the 2 year limit commenced from date UK property became a residence.