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Where Taxpayers and Advisers Meet

primary residence becoming buy to let

Joined:Wed Aug 06, 2008 3:37 pm

Postby nomura » Wed Nov 29, 2006 5:23 am

I bought 3 years ago my property ,1st time buyer,as principal residence ( did I need to register it as PPR or the primary residence is automatic if not is it possible to do it now for the time I spent in this residence?)
Last August I bought a new property to become my new principal residence ( do I need to register it as primary or PPR residence?)and I am renting out the 1st one as buy to let.
I get a new valuation figure for the buy to let from the survey the day I moved( higher the purchase price)
In the case I want to sell the buy to let in 2 year time , i should not pay CGT as I am sellling it before the 36 months deadline ,am I correct or will it be any concern about the registration as primary residence?

Thanks a lot for all your assistance and advises

Joined:Wed Aug 06, 2008 3:15 pm

Postby Instinctive » Wed Nov 29, 2006 7:16 am

(1) You do not need to register a property which is your only or main residence.

(2) 1st property used as only or main residence from 3 years ago to August 2006. It is let thereafter.

All gains are deemed to have accrued evenly throughout the whole period of ownership. Therefore, there is no need for any valuations in-between.

Gains apportioned to final 3 years ownership, plus any period before this which is used as your only or main residence, is exempt.

If you sell before August 2009, there is no CGT. But because of lettings relief, Taper Relief and CGT annual allowance, you could keep letting the property well beyond this date and still have to pay little or no CGT.


Joined:Wed Aug 06, 2008 3:37 pm

Postby nomura » Wed Nov 29, 2006 7:50 am

thanks for your prompt answer.

So there is no need to contact HMR or a tax office to declare my buy to let property was my PPR and primary residence before moving to my new home in august where i am living in as a main residence.all is automatic.correct?

Peter D
Joined:Wed Aug 06, 2008 3:37 pm

Postby Peter D » Wed Nov 29, 2006 8:29 am

Instictive is correct but for the price of a stamp for a letter to the Inspector of taxes at you local HMRC is a cheap price to pay for peice of mind. I only recommend this when an owner moved into a new PPR without selling the other but renting it out. Clean and simple. Regards Peter

Joined:Wed Aug 06, 2008 3:40 pm

Postby al_eebee » Wed Nov 29, 2006 2:56 pm

But Peter an election is irrelevant in this case. There is only one residence available at any time, either because that is all that is owned or because the other is let.

HMRC will normally only acknowledge and file elections and decide on their relevance when there is a disposal and it might be relevant.

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