Dear contributers,
I bought my current house in Belfast last year (Sept '03). I have lived in it since then. After I'd been in a few weeks I started letting out some of the rooms to help with the mortgage (lender is aware). I let out on average 3 of the 5 bedrooms at any given time.
I am planning to move out and move into a new house (which will be jointly bought with my partner).
Since the current house has appreciated by about £50k since last year, CGT becomes a factor.
I had initially planned to hold onto the house and let it out for a while, but have read on the Inland Revenue website that I could lose part of my PPR, due to letting it out.
Also, I may already have lost some PPR due to already having let out portions of the house.
However, hope sprang eternal when I read the following in the IR's CGT Manual online:
"Section 223(2) deems the final 36 months of ownership to be a period of only or main residence, see CG64985+"
...which seems to imply that HOWEVER the house has been occupied in the last 3years before disposal, it will be deemed to be "a period of only or main residence" - i.e. Section 223(2) seems to overide the the lettings issues, and lettings etc. will only be an issue if e.g. I held onto the house for longer than 3yrs.
Which relief will take precedence - the 3yrs or the lettings ?
(BTW I know how to work out the CGT due if Lettings takes precedence here)
Please could someone give me some advice here, as it will help me decide whether I need sell now, before I lose some (more?) PPR. Many thanks.
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