Ppr

Old-mair

Hi all,

My husband and I have just purchased a second property to renovate and then either rent or sell on. As such, we are looking at ways of reducing any future tax bill.

Having read about PPR Relief, I am still a bit unsure as to the requirements of HMRC, and also how to go about declaring it.
We are paying full council tax on the property, but what other things would need to be in place to be able to make a claim, and for how long?

It seems one of those areas that there are no "right" or "wrong" answers for, so just looking for some advice from people in the know...

Many thanks

TM1976

Principle Private Residence relief. You need to live in it as your home, as a second home it won't qualify unless you move into it and live in it as your own home. Your existing home you could however sell on free of CGT and claim PPR.

Bean_Counter

Old-mair wrote: »

My husband and I have just purchased a second property to renovate and then either rent or sell on.

I do not think that you would be liable to CGT on any gain, but you would be liable to income tax on any profit, after deducting allowable costs. HMRC would see this as a trade, especially if you do not live in it for a reasonable period of time.

CLAPTON

from what little details you provide

1. if you buy, renovate and the sell the HMRC will see this as trade and you will be liable to income tax on the profit

2. if you buy renovate and let out then you will be liable to income tax on the rental profit and cgt on the net capital gain when you sell