Question on primary residency

tony3619

Hello

So I lived with my partners parents until 2020 and then purchased my first property. 

I changed all my bank and bills addresses etc to my new property but kept my PAYE address as my girlfriends parents house. 

The reason for this is I have had post not being delivered or being delivered to the wrong address but can easily grab it from Their house. 

Obviously I'm not on the deed or anything like that at the parents house so I'm assuming my purchased house is my primary residency and they couldn't try and claim capital gains if I was to sell saying it was a 2nd home? 

Bookworm105

No, you only own one property and it is not let to tenants, it is your home. That is an overriding matter of fact so CGT does not apply.

in the event you did own two or more properties then, unless you had made a nomination declaration within 2 years of first having that combination of properties, and only then, would the "matter of facts" be examined in details  Such (peripheral) issues as where does your post go, along with many other facts, would be used to judge which is the primary residence

tony3619

Bookworm105 said:

No, you only own one property and it is not let to tenants, it is your home. That is an overriding matter of fact so CGT does not apply.

in the event you did own two or more properties then, unless you had made a nomination declaration within 2 years of first having that combination of properties, and only then, would the "matter of facts" be examined in details  Such (peripheral) issues as where does your post go, along with many other facts, would be used to judge which is the primary residence

Thanks for the reply,

I was worried that having my PAYE/Hmrc and possibly any other bills still as Their address may cause a problem. 

So it's all done on properties you own? Not where you live? So hypothetically could someone only own one property in the country. Rent a flat in a city all week and still not pay CGT if they sell? 

AskAsk

tony3619 said:

Bookworm105 said:

No, you only own one property and it is not let to tenants, it is your home. That is an overriding matter of fact so CGT does not apply.

in the event you did own two or more properties then, unless you had made a nomination declaration within 2 years of first having that combination of properties, and only then, would the "matter of facts" be examined in details  Such (peripheral) issues as where does your post go, along with many other facts, would be used to judge which is the primary residence

Thanks for the reply,

I was worried that having my PAYE/Hmrc and possibly any other bills still as Their address may cause a problem. 

So it's all done on properties you own? Not where you live? So hypothetically could someone only own one property in the country. Rent a flat in a city all week and still not pay CGT if they sell? 

main residence definition here

https://www.gov.uk/tax-sell-home

so you would need to prove that you live there as your main home.  having post sent to another address will not be an issue if you have other documents to prove that you live at your house, like council tax, utility bills, bank statements etc

AskAsk

Bookworm105 said:

No, you only own one property and it is not let to tenants, it is your home. That is an overriding matter of fact so CGT does not apply.

in the event you did own two or more properties then, unless you had made a nomination declaration within 2 years of first having that combination of properties, and only then, would the "matter of facts" be examined in details  Such (peripheral) issues as where does your post go, along with many other facts, would be used to judge which is the primary residence

i thought the law on nominating a property as your main residence has changed and you can no longer nominate a property as your main residence if you live in another property?  i heard they had tightened up on that law so that you can't live in a property as your main home but nominate another one as your main residence when it isn't actually your main residence for tax advantages.

tony3619

What I'm finding confusing is whether it's based on "ownership" or "residence" and how that is determined. 

AskAsk

tony3619 said:

What I'm finding confusing is whether it's based on "ownership" or "residence" and how that is determined. 

as far as i understand, it has to be both ownership and residence for the private residence relief.

Bookworm105

tony3619 said:

What I'm finding confusing is whether it's based on "ownership" or "residence" and how that is determined. 

you can own a property and let it to tenants. By definition therefore it is not your residence, it is the tenant's residence even though they do not own it. 

Obviously the tenants cannot be charged CGT on the sale of a property that is not theirs to sell, but the owner can be charged CGT on the sale of a property that they do not reside in

CGT exemption is by virtue of your residence in the property you own

Bookworm105

AskAsk said:

Bookworm105 said:

No, you only own one property and it is not let to tenants, it is your home. That is an overriding matter of fact so CGT does not apply.

in the event you did own two or more properties then, unless you had made a nomination declaration within 2 years of first having that combination of properties, and only then, would the "matter of facts" be examined in details  Such (peripheral) issues as where does your post go, along with many other facts, would be used to judge which is the primary residence

i thought the law on nominating a property as your main residence has changed and you can no longer nominate a property as your main residence if you live in another property?  i heard they had tightened up on that law so that you can't live in a property as your main home but nominate another one as your main residence when it isn't actually your main residence for tax advantages.

and your evidence for that is?
What you "heard" sounds like someone muddling up the meaning of "available for residence" - ie you cannot nominate a property which is let, as it is not available for you to reside in. That has always been the case.

Current law here: Tax when you sell your home: Nominating a home - GOV.UK (www.gov.uk)

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

user1977

Having merely a small proportion of your mail go to another address is irrelevant, stop worrying!

tony3619

user1977 said:

Having merely a small proportion of your mail go to another address is irrelevant, stop worrying!

It wasn't so much any old mail going to another address I was worrying about. It's the fact it is my PAYE/HMRC address that isn't updated and that could cause a problem if I was to sell because of it being linked on a system etc