Capital Gains Tax - Second Home

[Bluemanc100]

I have a question relating to capital gains tax on a second property..

We live in a house at present and also have a buy to let apartment in Chester.

We are looking to move closer to family and sell up here in Stafford due to my wife's current health issues.

If we sell up and bank the proceeds whilst moving into our apartment (our tenant has just left therefore it is currently empty) can we avoid tax on that property if we then buy another house after living in it for a period of time?

I have heard that a stay of six months will allow us to classify the apartment as our main residence and therefore avoid gains tax on the profit we may make if we ultimately sell up.

Not sure yet if we will sell the apartment as the income is a help and beats the interest rate by a mile.

Does anybody have advice on this please as I am not sure what the "flipping" regulations or taxation clauses are...

 

[SWP's back]

*grabs popcorn*

 

[Bluemanc100]

I don't mind anybody criticising me for looking to avoid tax... i pay more than enough into the system right now and there are plenty of people exploiting loopholes so bring it on.

There may be at least one positive reply if I am lucky...

 

[Millwallawayveteran1988]

I don't mind anybody criticising me for looking to avoid tax... i pay more than enough into the system right now and there are plenty of people exploiting loopholes so bring it on.

There may be at least one positive reply if I am lucky...

Because the tax rules change all the time I would seriously consider paying an expert for some guidance in this area. A couple of hundred quid now could save you thousands in the long term. Most reasonable sized accountancy firms have a tax specialist.

 

[Bluemanc100]

Because the tax rules change all the time I would seriously consider paying an expert for some guidance in this area. A couple of hundred quid now could save you thousands in the long term. Most reasonable sized accountancy firms have a tax specialist.

I do intend to do that but know that there are some property developers etc.on here who may have an immediate thought on this... as a quick and dirty answer

 

[west didsblue]

I have a question relating to capital gains tax on a second property..

We live in a house at present and also have a buy to let apartment in Chester.

We are looking to move closer to family and sell up here in Stafford due to my wife's current health issues.

If we sell up and bank the proceeds whilst moving into our apartment (our tenant has just left therefore it is currently empty) can we avoid tax on that property if we then buy another house after living in it for a period of time?

I have heard that a stay of six months will allow us to classify the apartment as our main residence and therefore avoid gains tax on the profit we may make if we ultimately sell up.

Not sure yet if we will sell the apartment as the income is a help and beats the interest rate by a mile.

Does anybody have advice on this please as I am not sure what the "flipping" regulations or taxation clauses are...

It's quite complicated but basically you'll need to live in your flat for at least 18 months and then you can only get relief on a proportion of the gain which would be a percentage of the time you lived in it compared to the time you owned it.
https://www.gov.uk/tax-sell-home/private-residence-relief

 

[denislawsbackheel]

Sorry you have no chance.
Election of PPR had to be made within 2 years of acquisition of second property
Then HMRC moved the goalposts
Now they alone decide.

Been there, done it, bought the tee shirt
Paid up.

 

[Bluemanc100]

28% it is then

 

[crazyg]

1. Become an MP.
2. "Flip" the homes - tell different stories to HMRC and the government as to which is the permanent residence.
3. Get found out but pay a small fine for fiddling your expenses - less than the CGT you would have paid.

Simples.

 

[Ifwecouldjust.......]

1. Become an MP.
2. "Flip" the homes - tell different stories to HMRC and the government as to which is the permanent residence.
3. Get found out but pay a small fine for fiddling your expenses - less than the CGT you would have paid.

Simples.

Missed a few steps there

1) become an MP
2) Buy a second home (interest free paid for by the average joe)
3) Furnish your Second Home and put all the bills through your expenses
3) flip the homes so that your family home becomes your second home.
4) Claim for the running costs of the family home (including your personal maid and gardener like the conservative mp of mine did)
5) Come to leave parliament following the expenses scandal....flip homes again just before you do.
6)Earn a regular healthy income letting your Second Home purchased interest free and furnished by the taxpayer on your behalf.


Now thats simples*