CGT nomination question - Jimmo???

00ec25

I suspect this is a non starter but one that I would like to clear up: is a new CGT nomination available if the combination of properties owned and occupied then includes a rental property as the 3rd property?

eg: 2 properties owned for many years - election never previously made, main residence therefore based on facts of occupation - one is clearly the second (holiday) home

unmarried owner relocates for work purposes but rather than buy a 3rd property choses to rent. Distance means they will rarely return to either of the 2 owned properties but continue to want to own them (see below). Therefore the rental proeprty is effectively now their "main" home - would this entitle an election to be made or is ownership a prerquisite to making a CGT nomination?

If it matters: continued ownership of the non holiday home is due to a clear intention to return (on retirement or possibily sooner depending on job). The holiday home continues to be retained for that purpose

jimmo

I ducked this issue on a different thread a couple of days ago as I didn’t have time to look it up then.
Yes, a rented property does count as a residence.
http://www.hmrc.gov.uk/manuals/cgmanual/CG64470.htm
http://www.hmrc.gov.uk/manuals/cgmanual/CG64500.htm
So, on the occasion that you first have the combination of the 3 residences, a new opportunity to make an election will occur.
Are you sure that the owned properties will continue to be residences?
The intention to return, on retirement, to the non-holiday home is actually a test when someone is living in job-related accommodation so may be irrelevant here.
http://www.hmrc.gov.uk/manuals/cgmanual/CG64555.htm

Pennywise

Further to Jimmo's usual excellent reply, can I just emphasise that you can only claim a property is your PPR if it's not used otherwise, i.e. if both your owned properties are rented out, then neither can be your PPR. Of course, either or both "may" be eligible for lettings relief or PPR relief due to the "working away" rules or the "final years" rules.

As for the history, with no election have been made, then your PPR will be your main home and your holiday home won't have been your PPR, unless there were periods where you "lived" there - i.e. months of occupation rather than occasional weekends/holidays, supported by proof such as electoral register, change of address with banks/HMRC etc.

You can now nominate your holiday home as PPR, but you would have to actually live in it as your home at some stage during the PPR claim date range for it to apply. PPR elections are merely a method of stating your PPR where there is doubt, i.e. where you live in more than one place - it doesn't work if you don't live in it during a PPR election period.

00ec25

thanks both

confirms what I was told but did not have the evidence to support. Letting out either is not an issue, possibly having to move for work is, but it would be for as short as it takes to come home again ie 1 - 2 years with luck!