Nominating a principal private residence

Source: HM Revenue & Customs | | 08/09/2020

There is usually no Capital Gains Tax (CGT) due on a property which has been used solely as the main family residence. Conversely, an investment property which has never been used as a private residence will not qualify for relief. This relief from CGT is commonly known as private residence relief.

There are a number of issues taxpayers that own more than one home should be aware. An individual, married couple or civil partnership can only benefit from CGT on one property at a time. However, it is possible to choose which property benefits from a CGT exemption by making an election.

This must be done by nominating one property as your main home by writing to HMRC and specifying (with the full address) which home you want to nominate. All owners of the property must sign the letter. If you want to nominate a home you must do this within 2 years of any relevant change. You must have also lived in the house as your main or only residence at some point in the past.

There are special rules for overseas property and for non-UK residents. It is important to carefully consider the timing and frequency of changing an election.

If a property has been occupied at any time as an individual’s private residence, the last 9 months of ownership are disregarded for CGT purposes – even if the individual was not living in the property when it was sold.



 

Latest News

The new Winter Economy Plan - Summary of Measures
24/09/2020 - More...
The Chancellor, Rishi Sunak, has today delivered a statement to the House of Commons outlining plans to help protect

Venues required to record contact details
23/09/2020 - More...
It has become a requirement for premises and venues across England to have a system in place to record contact details

Changes to duty free shopping
23/09/2020 - More...
The government has published the new rules for duty free and tax free shopping that will come into effect from 1 January

Search News


Newsletter

With our newsletter, you automatically receive our latest news by e-mail and get access to the archive including advanced search options!

» Sign up for the Newsletter
» Login