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othello

Capital Gains Tax On Btl

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In order for a property to qualify as your PPR (and hence qualify for CGT relief) it must be your main residence. This is a matter of fact, this is important the facts speak. You can have only one main residence and you must reside at that residence. Where you have two residences, you can elect for one to be your main residence but you must reside there.

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Not so.

Not sure if you meant to reply to my post but anyone that rents out their home that was previously their PPR (principal private residence) will be exempt from CGT, providing the property was not bought solely as an investment (as you correctly state)

Its not rocket science.

A couple that are not married can own a property each, rented out so long as it has been their principle residence. Not hard to prove, even if its stretching the truth.

There is no capital in announcing you are living with someone in this Country, so dont do it !!!!.

Edited by laurejon

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If the property moves from PPR to effective BTL then the CGT exemption is subject to the the 3 year rule, post that is does not qualify for PPR relief except in part.

You must, to qualify for PPR have resided at the residence in practice. In other world if you own a single property which is rented and live in another that you rent from someone else the owned property does not subject to the 3 year rule qualify as PPR except over the time you resided there.

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If the property moves from PPR to effective BTL then the CGT exemption is subject to the the 3 year rule, post that is does not qualify for PPR relief except in part.

You must, to qualify for PPR have resided at the residence in practice. In other world if you own a single property which is rented and live in another that you rent from someone else the owned property does not subject to the 3 year rule qualify as PPR except over the time you resided there.

This is correct. Furthermore, if you move back in before you sell and have not owned another property in the meantime, you also get another 3 years – if the absence was because your work took you away, you get another 4 years allowed or, if your work is (entirely) abroad, all of the period abroad counts as if you were living there. In addition, if it has been let as residential accommodation while you were not living there, it also gets a further relief, which is equivalent to doubling the Private Residence relief, or up to a maximum of £40k additional relief.

As a Chartered Accountant specialising, to some extent, in tax investigations I am heartened by much of what I have read in this topic - I seem to be assured of an income stream from investigation work for many years to come!

The new Stamp Duty form links the owner of the property with their National Insurance number, so it doesn’t take a genius to keep a record of who owns what property.

Yes, they are thinking about promotion and pensions and they are promoted on results, so no point in coming after you after only a year or so – better to wait until there is enough back tax and penalties to make it look really good.

And they can go back as far as they like – yes, 6 years at first, but 12 if they can establish negligence (you failed to complete your return) or indefinitely if they have reasonable grounds to suspect fraud (you intended to evade tax). I knew one old boy they hounded to the grave – they went back more than 30 years. They had not an ounce of sympathy that he was on his death-bed – they still kept on at him – they seemed to think that him dying was just a ploy to avoid paying!

And it’s true that you are guilty until proven innocent. And it’s true that they are (mostly) unprincipled b*st*rds who will do anything to squeeze the maximum out of you they can. I had one client who had been defrauded by his previous accountant (who was unqualified), who had effectively framed him, but rather than pursue the accountant, they pursued the defrauded client who was an easier target - and they admitted as much. They were after about £18k but settled on £10k – it would have cost the client more than that to fight the case right the way through. After a couple of years of fighting the Inland Revenue, the client had lost the will to fight further to pursue the accountant himself – it was a clever fraud.

As I say – plenty of work in the pipeline! B)

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  • 333 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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