Sole or Principal residence

**LisaContractorUmbrella** · 14 March 2013, 09:10

Originally posted by SandyD View Post

I moved out of my main home just under 3 years ago and bought a property closer to where my most contracts are, so been living in the second property and rented out the first property.

However, I have always considered the first property to be home, and had intention to go back to live in one day if I decide to do permie and find a suitable place near home, or if I was lucky enough not to need to work (yeh right

) I got a permission to let the first property on these ground (i.e. intention to go back) which is totally true.

So what is the situation from a legal point of view, could I just move back into the first property at any time (once the tenancy agreement is completed) and consider that to be my main/ principal home, and perhaps rent the second property?

I have no intention of selling either property, especially the first property in the near future, so am not worried about CG, but it would be good to know the legal issues around it and how to plan it.

I am not really sure what you are asking - the legal position regarding the tenancy contract, tax implications, eviction procedures??????

**SandyD** · 14 March 2013, 09:18

I suppose from a tax implication.

I wont move back in property one until the tenancy term is completed which will be in a few months. So that should be no issue I hope.

I suppose can I change what is considered my main/principal home at any time or is there a specific time period in which one has to decide?

Also if I move back into the first property, I would be renting out the second property as rooms and will keep a room for me there so if I can stay there 3 nights or so a week to be closer to work.
So the split between the two properties would be 4/3 or 4/3 ... would I still be able to claim that the first property is my main residence even if I am staying away in the second property a few nights a week?

**northernladuk** · 14 March 2013, 10:53

If you have been working in the same geographic location for over 2 years you can't claim anything so it makes no difference what you do. You can't claim rent/mileage anyway.

**Ignis Fatuus** · 14 March 2013, 10:57

If CGT is not an issue, what do you mean by "your main home"? What does it matter?

Are you by any chance thinking of what will be your company's home office, from which it will send you to travel to client sites? Because that might be more complicated.

If you own both properties and spend part of every week in each, I'd guess that you are resident in both. But the answer will be easier if you ask the right question. And it may be different depending on the question.

**SandyD** · 14 March 2013, 11:16

Originally posted by northernladuk View Post

If you have been working in the same geographic location for over 2 years you can't claim anything so it makes no difference what you do. You can't claim rent/mileage anyway.

Where did I ask about the mileage claims etc... my question has nothing to do with that !!

**SandyD** · 14 March 2013, 11:20

Originally posted by Ignis Fatuus View Post

If CGT is not an issue, what do you mean by "your main home"? What does it matter?

Are you by any chance thinking of what will be your company's home office, from which it will send you to travel to client sites? Because that might be more complicated.

If you own both properties and spend part of every week in each, I'd guess that you are resident in both. But the answer will be easier if you ask the right question. And it may be different depending on the question.

I did want to know the CGT as well, its not an issue now as I don't intend to sell, but it will be good to know for the future.

Like you say I didn't think it matters, but wonder why HMRC and councils are so particular about that? I think perhaps from a rental / tenants issues?
This is why am asking about the reason and legality of changing the main/principal residence.

**northernladuk** · 14 March 2013, 11:53

Originally posted by SandyD View Post

Where did I ask about the mileage claims etc... my question has nothing to do with that !!

Your question is so ambiguous and confusing we are trying to cover all posts. You didn't make it clear if you were talking about personal taxation, business taxation, expenses or squat hence Lisa's question, which you didn't really qualify very well. I mean, you don't even know yourself why you were asking 'I suppose from a tax implication'... Claiming expenses is a tax implication and switching residencies and will mean a changes to a) charging rent and b) mileage to your client... So it is a valid point. Just because you don't have a bloody clue what you are even asking don't moan about it.

My apologies for trying to add a bit of proactive advice.

**LisaContractorUmbrella** · 14 March 2013, 11:59

I think the OP maybe talking about home 'flipping' a la politicians - SandyD are you talking about expense allowances?????

**SandyD** · 14 March 2013, 12:05

No, thanks, been looking up why councils been so particular about establishing main residence... seems its to do with the council tax as some people claim discounts, but this is not the case for me.

From the above answers it seems HMRC's main concern is CG issue and expenses claims, the expenses claims don't bother now, I just decided to take a very good permie offer, we'll see how it goes.

Will try to read up on the CG issue.

Sole or Principal residence