Nice people thread part 4 - sugar and spice and all things

chewmylegoff

Doozergirl wrote: »

I don't feel comfortable with it. The PPR remains in ownership, you move to another local property for a short period which you subseuently sell, claiming it to be that your PPR and making a big fat profit; then move back into your original PPR. I don't think that if HMRC looked at it that it would really look like anything but turning over a property for profit.

i think if you simply flip the property in a few weeks without doing any work to it then you are probably in trouble, but i think that if you actually do really move in and live there and renovate / extend then PPR would apply. you would need to live in the house and i do not think you could get away with e.g. your partner continuing to live in another house with your children whilst you claim to be living in the one you're doing up. it's not like you're screwing anyone over because the PPR (or PRR as i think it's now called) can only accrue on any one property at any one time, therefore for the period of time you are not living in your other home, you are accruing a CGT liability on any gains there (subject, of course to lettings relief).

the problem is that HMRC may deem that you are trading as a property developer and the profits would become subject to income tax. this would be HMRC's preference as they will get much more tax (assuming that you already have an income) because your CGT annual exemption of £10k (x2 if a couple) or whatever it is cannot be used, and the rate of income tax is much higher than CGT. they cannot apply both CGT and income tax therefore they will be more likely to go down the income tax route in my view.

silvercar

i think if you simply flip the property in a few weeks without doing any work to it then you are probably in trouble, but i think that if you actually do really move in and live there and renovate / extend then PPR would apply. you would need to live in the house and i do not think you could get away with e.g. your partner continuing to live in another house with your children whilst you claim to be living in the one you're doing up. it's not like you're screwing anyone over because the PPR (or PRR as i think it's now called) can only accrue on any one property at any one time, therefore for the period of time you are not living in your other home, you are accruing a CGT liability on any gains there (subject, of course to lettings relief).

Accountants talk of quality not quantity, so it is the fact that you properly make it your home (and notify the world eg your employer, bank, doctors, schools etc of new address) rather than the length of time that you do it for. Though accountancy forums seem to suggest a year as a guide to avoiding to much investigation.

A married couple can only have one PPR between them, so leaving separately wouldn't wash. A story of trial separation etc would not look genuine with consent to let/ BTL mortgage records.

Interestingly buying a second home and not moving into it while you renovate. Then moving in and selling the first would look logical and acceptable.

lostinrates

zagubov wrote: »

Lir, are you secretly more Scottish than you've been letting on?

I do have a some scottish blood and a family tartan etc...but no nothng about the etiquette of that sort of business. One of my maternal melting pot ancestors was a travellor who met with a scandivian travellor and went on to pioneer a place.

lostinrates

sheesh....I missed the christmas market at bath all packed up and gone. Nuts timing, surely its this week everyone is doing final shopping and on school holidays etc.

StevieJ

lostinrates wrote: »

I do have a some scottish blood and a family tartan etc...but no nothng about the etiquette of that sort of business. One of my maternal melting pot ancestors was a travellor who met with a scandivian travellor and went on to pioneer a place.

Who was that then?

lostinrates

StevieJ wrote: »

Who was that then?

a now dead couple of people

PasturesNew

lostinrates wrote: »

sheesh....I missed the christmas market at bath all packed up and gone. Nuts timing, surely its this week everyone is doing final shopping and on school holidays etc.

To be fair, maybe most of them have "a proper business" elsewhere that needs all hands on deck for that rush.

At least you missed it by loads ... rather than just one day.

GDB2222

I have very slow typing speeds, but I have just updated my dictation software to the latest edition of Dragon NaturallySpeaking. I previously had version 9, and I have upgraded to version 11.5. The new version is much, much more accurate than the old version. In fact, I think is actually usable! I have dictated this post on the forum in one go, without corrections. (I notice that it has omitted one word from the sentence before last, but that is the only error I can see.)

I just thought that I would mention it in case there is anybody else here who is struggling with their typing. I am not a touch typist, and this is much quicker than I can type. I got it because I was starting to get RSI, and I hoped to be able to rest my hands quite a bit.

lostinrates

GDB2222 wrote: »

I just thought that I would mention it in case there is anybody else here who is struggling with their typing. .

:rotfl::rotfl::rotfl::rotfl::rotfl::rotfl::rotfl::rotfl::rotfl::rotfl::rotfl::rotfl:

StevieJ

This should get the Daily Mail frothing

Police have charged a man with assault after an alleged fare-dodger was removed from a train by a passenger.

http://www.bbc.co.uk/news/uk-scotland-edinburgh-east-fife-16288101