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capital Gains please help!!!!

lgarsidelgarside Well-KnownRegistered Posts: 122
Hello if someone owns a home and they also have a holiday home they bought in sep 2001, if they sell their main home is this 100% exempt from capital gains, even if they nominate their holiday home in sep for 4 months to be their PPR so they can get the full 5 years if they sell in sep 07?

I get confused with the ppr and if you can have it on 2 houses at the same time, if you nominate say the holiday home does this make your main house with the ppr exempt for those 4 months?

Comments

  • burgburg Experienced Mentor GloucesterModerator, FMAAT, AAT Licensed Accountant Posts: 1,441
    Firstly I'm not 100% sure but heres what I think,

    My understanding was that you could only nominate your 2nd home (i.e. the holiday home) as your PPR if you lived it it for a reasonable amount of time each year. (i.e. at weekends).

    As with the original house, if they did nominate the holiday home as their ppr then it will still be deemed as a PPR for 2 years after it stopped actually being.

    So effectively I think you can have 2 PPR's one as deemed and the nominated.

    sure someone will be along with more knowledge though soon.
    Regards,

    Burg
  • paulrpaulr Feels At Home Registered Posts: 48
    Good afternoon,
    HMRC will accept an election on individuals holding more than one property;
    however you need to be able to prove that the main residence is in fact
    the main residence if HMRC query matters.
    Main attracts 100% relief; other properties fall under CGT legislation.
    HMRC will work on annual basis and not part years when looking at taper relief
    if disposal is anticipated prior to 6th April 2008;
    best wishes,
    paulr.
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