CGT on Temporary Property

PSilver

I bought a house (renovation project) and bought another one to live in (paid 2nd home SDLT). The work took 2 years and I decided to move back to the renovated house even though loads of work still needs to be done. I'd registered the other house with HMRC as my primary residence. I now need to sell the other house or rent it out.

HMRC say Private Residence Relief only applies if you have one home and you’ve lived in it as your main home for all the time you’ve owned it. I fully moved out a while ago and I'm having some repairs done before I sell - is there any kind of time limit that applies?

Bookworm105

renovation project - not lived in for approx 2 years after purchase. Now lived in as main home

other house - lived in for 2approx first 2 years after purchase, formally registered with HMRC as main home. Now vacant having moved to renovated home

PRR applies to the time period in which each property was lived in as your main home (or was declared as such)
If PRR status applies to any property at any period of time then you also get to claim the final 9 months of its ownership as deemed PRR even if you no longer live in it as your actual home during those 9 months 

in your case therefore both properties you own will have some exempt PPR element to their CGT liability.

silvercar

I'm wondering if you can get back the extra SDLT you paid if you sell within 3 years of owning both and within 1 year of moving back to the other place?

Jeremy535897

Period of absence

Some periods when you were not using the house as your only or main residence will still qualify for relief. These should be treated as periods of actual occupation when you’re calculating the fraction of any gain that qualifies for relief.

If, for up to a period of 24 months you do not occupy your new home when you acquire it because you’re unable to sell your old home, or you need to carry out refurbishment redecoration or alterations, you can treat up to the first 24 months as if the house had been your only or main residence in that period. The same treatment applies when you complete a house which you have built on land which you own.

From https://www.gov.uk/government/publications/private-residence-relief-hs283-self-assessment-helpsheet/hs283-private-residence-relief-2024