Capital Gains, Moving residence and PPR

shinyuk

Moneysavers I'd like some advice:

Scenario
Property 1
Currently my PPR - bought in 95 - My PPR until 99 then rented until 2002. Became my PPR once more. Now just started as a tenancy.

Property 2
Bought in 2004- rented until 2006(then empty). Now my residence as of OCT 07 (not elected as PPR yet).

I am just about to elect property 2 as PPR but what are the tax implications on the sale of either property? I don't foresee selling either for at least another 2-3 years...

Thanks in advance

fengirl_2

You dont need to elect for property 2 to be your PPR because it actually is your PPR. You only need to elect when you are effectively living in two properties, eg one in town during the week and one in the country at weekends.
property 1: The periods from 95 to 99 and 2002 to now will be exempt. The last 3 years of ownership will also be exempt. Then you have a let property exemption of up to £45k covering the period of letting. Depending on the actual figures, you may have no tax to pay.
Property 2: The period from now unitl you either move out and let again, or sell will be exempt, as will the final 3 yrs of ownership.

Cook_County

I do not agree with Fengirl as her advice does not accord with what the tax profession is advising.

Nonetheless given that these are presumbly 2 of the most valuable assets in your portfolio I would suggest spending the money on getting professional advice as against relying on an open forum.