Sole or Principal residence

[Ignis Fatuus]

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

You didn't. I'm trying to guess what your question is to do with, because I suspect that the answer will depend on that (i.e. there is no single universal well-defined notion of "main home").

What do you mean, "sole or principal residence"? In what context?

[Craig at Nixon Williams]

On the CGT front, there are a couple exemptions/reliefs that you might benefit from when you come to sell the properties.

Any period of ownership where the property was your primary residence will be exempt from CGT, this is based on the portion of time which it was your primary residence compared to the total amount of time that you held the property. If you have more than one property then an election should be made to HMRC within 2 years to tell them which of the properties should be considered your primary residence. There are also some circumstances where you have not actually lived in a property that HMRC will treat as a deemed period of occupation for PPR purposes.

If you have let out a property which was once your main residence (as it sounds like you have) then you may also be entitled to claim letting relief against the CGT due upon the sale of the property.

Finally there is your normal annual exempt amount (currently £10,600) on which you iwll not pay CGT.

Hope this helps!
Craig

[northernladuk]

You didn't. I'm trying to guess what your question is to do with, because I suspect that the answer will depend on that (i.e. there is no single universal well-defined notion of "main home").

What do you mean, "sole or principal residence"? In what context?

I think she talking from a purely personal point of view regarding being registered with the council for voting and claiming discount on council tax for either sole occupancy or being empty (neither of which apply from what she says) and which one you claim as your main residence when you come to sell the property as she will need to pay CG on any profit.

The fact she is living partly in both makes the CG particularly difficult and if not careful could end up having to argue why she shouldn't pay a percentage of both.

Make one your main residence, register with council for voting, have all your post delivered there and stick with it. The other is a investment property or second home. Before you start asking what the council/HMRC will say you need to get it straight in your head first. It has to be a main property/second one. Forget this 50/50 or whatever, you will make life incredibly hard for yourself. Get it right in your head which you want you main home to be and work around that. Flipping them is going to get pretty complicated with who you are registered with etc, let alone having all you rpost redirected and the like.

[SandyD]

Thanks NLUK, I am already doing that, i.e. moved to property 2 registered with the council had all my addresses changed to the new address etc, all above board.

However, I am asking for the future when I want to move back into my first property, I guess I will do the same thing over and move all the addresses to the first property. If I stay occasionally in the second property, then that shouldn't be an issue I believe.

[SandyD]

On the CGT front, there are a couple exemptions/reliefs that you might benefit from when you come to sell the properties.

Any period of ownership where the property was your primary residence will be exempt from CGT, this is based on the portion of time which it was your primary residence compared to the total amount of time that you held the property. If you have more than one property then an election should be made to HMRC within 2 years to tell them which of the properties should be considered your primary residence. There are also some circumstances where you have not actually lived in a property that HMRC will treat as a deemed period of occupation for PPR purposes.

If you have let out a property which was once your main residence (as it sounds like you have) then you may also be entitled to claim letting relief against the CGT due upon the sale of the property.

Finally there is your normal annual exempt amount (currently £10,600) on which you iwll not pay CGT.

Hope this helps!
Craig

Excellent Craig.. this is exactly the answers I was after.

Thanks very much

[Craig at Nixon Williams]

To throw something else into this...

If you are serious about living in both properties at the same time and renting out a room in the second, you could leave your PPR election at the second home (so that it is seen as your main residence) and then claim rent a room relief, this would mean that the first £4,250 per year would not be subject to income tax.

Hope this helps!
Craig

[SandyD]

To throw something else into this...

If you are serious about living in both properties at the same time and renting out a room in the second, you could leave your PPR election at the second home (so that it is seen as your main residence) and then claim rent a room relief, this would mean that the first £4,250 per year would not be subject to income tax.

Hope this helps!
Craig

Thanks, I am going to be renting rooms in both properties actually, can't see why I'd leave rooms empty when they can generate a bit of money. However the type of rental contract I have with the tenants differs, in the main/principal residence, as I am able to have a lodger license agreement for my main residence, but am told for the second property renting a room means having a AST tenancy agreement.