Principal Private Residence

WYSPECIAL

Any reference for that? Given hmrc still accept declarations of PPR,  I would have though that the home just needs to be available to you ie not rented out or occupied by others to the exclusion of the owner.

I remember hearing on the news that HMRC had tightened up the main PRR relief because people were exploiting it but I couldn't find much when I googled.

I found this one here.  Effectively, it all revolves around the definition of residence for the PRR.

https://www.markmclaughlin.co.uk/main-residence-election-is-the-property-a-residence/

That seems to support the idea that it is up to the individuals which house they elect.

Where it can be established that there are two or more residences, the election generally allows the individual to decide conclusively which residence should be treated as the main one for PRR purposes. HMRC cannot subsequently argue that the elected residence is not the individual’s main residence (although they unsuccessfully tried to do so in Ellis v HMRC [2013] UKFTT 775 (TC)). HMRC’s own guidance points out (at CG64485): “When nominating which residence is to be treated as the main residence, an individual is not obliged to nominate the residence which is factually his or her main residence.”

AskAsk

WYSPECIAL said:

Any reference for that? Given hmrc still accept declarations of PPR,  I would have though that the home just needs to be available to you ie not rented out or occupied by others to the exclusion of the owner.

I remember hearing on the news that HMRC had tightened up the main PRR relief because people were exploiting it but I couldn't find much when I googled.

I found this one here.  Effectively, it all revolves around the definition of residence for the PRR.

https://www.markmclaughlin.co.uk/main-residence-election-is-the-property-a-residence/

That seems to support the idea that it is up to the individuals which house they elect.

Where it can be established that there are two or more residences, the election generally allows the individual to decide conclusively which residence should be treated as the main one for PRR purposes. HMRC cannot subsequently argue that the elected residence is not the individual’s main residence (although they unsuccessfully tried to do so in Ellis v HMRC [2013] UKFTT 775 (TC)). HMRC’s own guidance points out (at CG64485): “When nominating which residence is to be treated as the main residence, an individual is not obliged to nominate the residence which is factually his or her main residence.”

I was reading the example of the person who owned a farm and a few second homes, where he nominated the second homes as the main residence but HMRC dispute that it was the farm that was the main residence.