PPR and capital gains

crisp

how long do you need to own or live in a house to claim it as your PPR?

reddevilled

There is no time specified. As long as you actually live in it as your main home you can make the election for it to be your PPR (if you have more than one home).

crisp

thanks for the reply.

so if I was there for under 4 weeks, could I claim it as my PPR if I sold it?

we are due to exchange on a property this week. i have already been approached by a young couple that want to buy it as her mother lives 3 doors away and the last house for sale on the road was 8 years ago.

my intention was to move in and rent my current place, but they have made me an offer which I would be happy to take. its a nice house, but it means more to them than me and given the offer I would rather sell and stay at my current place until I find something else.

I have only purchased one house before; my current one so I havent bought and sold regularly.

under these conditions would the IR look at this as my PPR?

reddevilled

Would you actually be moving in at all? Be aware that each year you get an annual exemption against capital gains tax of around 9k so unless you make a gain of more than 9k then it isn't an issue anyway.

crisp

yes I would move in for the month. i would register on the electoral roll, have council tax and bills in my name. but it would be for a month max.

I am seeing the couple tomorrow to discuss dates with them, a deposit and solicitor details. the gain is three times my salary so its over £9k.

Debt_Free_Chick

crisp wrote:

yes I would move in for the month. i would register on the electoral roll, have council tax and bills in my name. but it would be for a month max.

As reddevilled said, the Inland Revenue do not specify a minimum period. However, if they decide to investigate, it's for you to prove that the property was your PPR ... the longer you've been there, the more likely you are to succeed. You can't simply claim it as your PPR ... it must actually have been your PPR and you need to think about how you're going to prove it.

In your case, it doesn't look very convincing (to me) as the house was sold (STC) before you even moved in. In fact, it looks like you might have exchanged by the time you move in!

Don't hold your breath .... if the IR decide to investigate, then you are in for a rough ride, I think. Sorry

silvercar

Have you exchanged yet? If not get a clause written in that you can assign the contract. This means you will be able to get the new buyers to complete on the purchase rather than you. They take over your completion of the property at £XXXk and pay you the extra. Saves you stamp duty (if there is). Saves on selling legal costs, registering the property etc.

crisp

thanks for the replies. exchange is tomorrow and completion next week. I will oen the property. havent sold or resold yet. still in talks. my buyers want to discuss dates. I think they want to completion in August when they are back from holiday; so I will have owned it for 2 months and be living there.