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Capital Gains tax if I move into buy to let property
Earwig83
Posts: 1 Newbie
If I sold my main/primary residence and moved into my buy to let property, would this remove any liability for capital gains tax if and when I sold the latter? I.e. The buy to let becomes my main/primary residence. Would any liability drop away on day 1 - for the sake of argument - of switching primary residence, or does HMRC operate any kind of time-based clawback/ratchet system?
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If I sold my main/primary residence and moved into my buy to let property, would this remove any liability for capital gains tax if and when I sold the latter? I.e. The buy to let becomes my main/primary residence. Would any liability drop away on day 1 - for the sake of argument - of switching primary residence, or does HMRC operate any kind of time-based clawback/ratchet system?
It would open up the opportunity to claim letting relief and Private residence relief. So it could definitely reduce your liability, but not necessarily to zero.
If you only lived there for a short time, hmrc may be suspicious, changing your address on documents like driving licence and notifying bank and employer of your new address would add evidence of your move.I'm a Forum Ambassador on the housing, mortgages & student money saving boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Forum Ambassadors are not moderators and don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com (it's not part of my role to deal with this). Any views are mine and not the official line of MoneySavingExpert.com.0
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