'Main residence' definition & CTG

Kamala

Hi All,

I have a question regarding the 'main residence' definition in the context of the exemption from capital gains tax.

I own a flat, however, I don't live there (as a result of splitting up with my ex-partner). I don't own any other property, I rent the place where I live at the moment.

Is my own flat still my main residence or not?

Thanks for you help.

xylophone

See

https://www.gov.uk/government/publications/private-residence-relief-hs283-self-assessment-helpsheet/hs283-private-residence-relief

The flat has not been your residence since you left it to reside elsewhere.

Kamala

Thank you.

Can I then select the place of my main residence? I have lived in a different places just about 3 years, however, it states that every time your circumstances change you can send HMRC a letter choosing your main place of the residence. I haven't lived in my current place more than 2 years.

kidmugsy

Who lives in your flat currently?

silvercar

Kamala wrote: »

Thank you.

Can I then select the place of my main residence? I have lived in a different places just about 3 years, however, it states that every time your circumstances change you can send HMRC a letter choosing your main place of the residence. I haven't lived in my current place more than 2 years.

You can select a place as your main residence, but it needs to be a place available for you to live in. It can't be rented out to tenants or in the process of major renovations and so not habitable.

The idea behind the hmrc declaration is for people who live in more than one place and flit between them eg a holiday cottage or someone having a family home in one town and a small flat near their work. It isn't for landlords to declare their rental property as a main residence, even if renting elsewhere themselves.

00ec25

so
- you own a property which used to be your main residence
- we will assume that you are not married to your ex (if you are, or if you are now divorced from her, the position is VERY different)

you are correct in saying you can nominate a property as your main residence for CGT purposes provided:
a) it is available for use (by you) as a residence
and
b) you have a qualifying "legal interest" in another property where you also reside. That means you cannot be a lodger or staying with family/friends, you must be at least a tenant paying rent

whether you meet condition a) is a moot point.

Kamala

Thank you all very much for the answers.

My ex-partner lives in the property and it is available for my use. I do indeed rent the other place.

I've called HMRC today and asked if I could change my main address, they have done it without any problems. Almost too easy.

I'm wondering if it's enough. Do I have to send HMRC a letter? What is the worst case scenario if I don't pay CGT thinking that this flat was my main residence and the HMRC will decide differently?

00ec25

the nomination has to be signed by the individual so the last thing you should do is relay on anything HMRC told you verbally

put it in writing

read:
https://www.gov.uk/hmrc-internal-manuals/capital-gains-manual/cg64520

Kamala

Thank you. Is there any template I could use?

le_loup

Dear Mr/Mrs Taxman/Woman
My main address is:
24 Acacia Avenue
Anytown
XX00 0XX
………. but, don't use that address unless it is correct!