2nd home becoming main residence

silvercar

filbertfox said:

lincroft1710 said:

By "most of the time" I presume you mean "all the time, other than holidays or visiting friends/relatives".


As soon as the money changes hands (and providing you are moving or have moved out) you will cease to have 2 homes and should inform your Welsh council of the Welsh home being your only and full time home.


The Welsh home will be subject to CGT when you sell but the amount will be subject to whether you sell (e.g.) in 2 years or 20 years time. 

By 'most of the time' we do intend to let out the property in the 2 month summer season when we are away on holiday.would that have any impact on Council tax or CG tax?

Plenty of advice online about that, as Wimbledon fortnight attracts people letting lucratively for 2 weeks a year eg https://www.allinaccountancy.co.uk/post/wimbledon-home-renters-warned-about-tax-liability

No mention of CGT, so I wonder if it still considered your main home during that time, certainly it fulfils the criteria of address used for doctors/ employers/ hmrc etc and you won’t have another home at that time.  

Grumpy_chap

silvercar said:

filbertfox said:

lincroft1710 said:

By "most of the time" I presume you mean "all the time, other than holidays or visiting friends/relatives".


As soon as the money changes hands (and providing you are moving or have moved out) you will cease to have 2 homes and should inform your Welsh council of the Welsh home being your only and full time home.


The Welsh home will be subject to CGT when you sell but the amount will be subject to whether you sell (e.g.) in 2 years or 20 years time. 

By 'most of the time' we do intend to let out the property in the 2 month summer season when we are away on holiday.would that have any impact on Council tax or CG tax?

Plenty of advice online about that, as Wimbledon fortnight attracts people letting lucratively for 2 weeks a year eg https://www.allinaccountancy.co.uk/post/wimbledon-home-renters-warned-about-tax-liability

No mention of CGT, so I wonder if it still considered your main home during that time, certainly it fulfils the criteria of address used for doctors/ employers/ hmrc etc and you won’t have another home at that time.  

Is there a difference between 2 weeks and 2 months?
Where would be the cut-off?

silvercar

Grumpy_chap said:

silvercar said:

filbertfox said:

lincroft1710 said:

By "most of the time" I presume you mean "all the time, other than holidays or visiting friends/relatives".


As soon as the money changes hands (and providing you are moving or have moved out) you will cease to have 2 homes and should inform your Welsh council of the Welsh home being your only and full time home.


The Welsh home will be subject to CGT when you sell but the amount will be subject to whether you sell (e.g.) in 2 years or 20 years time. 

By 'most of the time' we do intend to let out the property in the 2 month summer season when we are away on holiday.would that have any impact on Council tax or CG tax?

Plenty of advice online about that, as Wimbledon fortnight attracts people letting lucratively for 2 weeks a year eg https://www.allinaccountancy.co.uk/post/wimbledon-home-renters-warned-about-tax-liability

No mention of CGT, so I wonder if it still considered your main home during that time, certainly it fulfils the criteria of address used for doctors/ employers/ hmrc etc and you won’t have another home at that time.  

Is there a difference between 2 weeks and 2 months?
Where would be the cut-off?

It’s an interesting question, clearly people don’t have a non resident time when they go on holiday for 2 weeks or more, or even backpacking or taking a long cruise etc. But CGT residence exemption is based on where your main place of residence is, so if you are away on holiday your residence doesn’t change. Same for people with 2 properties, if their main home (as declared to hmrc) is let out while they take a break in their second home, does that negate the declaration of it being their main home, and again for how long would it need to let to not be considered trivial. Letting it out on an AST minimum 6 months would mean it can’t be their home, but a short break???

Bookworm105

silvercar said:

Grumpy_chap said:

silvercar said:

filbertfox said:

lincroft1710 said:

By "most of the time" I presume you mean "all the time, other than holidays or visiting friends/relatives".


As soon as the money changes hands (and providing you are moving or have moved out) you will cease to have 2 homes and should inform your Welsh council of the Welsh home being your only and full time home.


The Welsh home will be subject to CGT when you sell but the amount will be subject to whether you sell (e.g.) in 2 years or 20 years time. 

By 'most of the time' we do intend to let out the property in the 2 month summer season when we are away on holiday.would that have any impact on Council tax or CG tax?

Plenty of advice online about that, as Wimbledon fortnight attracts people letting lucratively for 2 weeks a year eg https://www.allinaccountancy.co.uk/post/wimbledon-home-renters-warned-about-tax-liability

No mention of CGT, so I wonder if it still considered your main home during that time, certainly it fulfils the criteria of address used for doctors/ employers/ hmrc etc and you won’t have another home at that time.  

Is there a difference between 2 weeks and 2 months?
Where would be the cut-off?

It’s an interesting question, clearly people don’t have a non resident time when they go on holiday for 2 weeks or more, or even backpacking or taking a long cruise etc. But CGT residence exemption is based on where your main place of residence is, so if you are away on holiday your residence doesn’t change. Same for people with 2 properties, if their main home (as declared to hmrc) is let out while they take a break in their second home, does that negate the declaration of it being their main home, and again for how long would it need to let to not be considered trivial. Letting it out on an AST minimum 6 months would mean it can’t be their home, but a short break???

being away on holiday does not stop it being your main home
owning more than one property and spending time in the holiday home does not stop the main home being the main home

but. leaving the main home and then letting it does, by definition, mean it ceases to be your residence as it is now the tenant's residence.

user1977

Bookworm105 said:

silvercar said:

Grumpy_chap said:

silvercar said:

filbertfox said:

lincroft1710 said:

By "most of the time" I presume you mean "all the time, other than holidays or visiting friends/relatives".


As soon as the money changes hands (and providing you are moving or have moved out) you will cease to have 2 homes and should inform your Welsh council of the Welsh home being your only and full time home.


The Welsh home will be subject to CGT when you sell but the amount will be subject to whether you sell (e.g.) in 2 years or 20 years time. 

By 'most of the time' we do intend to let out the property in the 2 month summer season when we are away on holiday.would that have any impact on Council tax or CG tax?

Plenty of advice online about that, as Wimbledon fortnight attracts people letting lucratively for 2 weeks a year eg https://www.allinaccountancy.co.uk/post/wimbledon-home-renters-warned-about-tax-liability

No mention of CGT, so I wonder if it still considered your main home during that time, certainly it fulfils the criteria of address used for doctors/ employers/ hmrc etc and you won’t have another home at that time.  

Is there a difference between 2 weeks and 2 months?
Where would be the cut-off?

It’s an interesting question, clearly people don’t have a non resident time when they go on holiday for 2 weeks or more, or even backpacking or taking a long cruise etc. But CGT residence exemption is based on where your main place of residence is, so if you are away on holiday your residence doesn’t change. Same for people with 2 properties, if their main home (as declared to hmrc) is let out while they take a break in their second home, does that negate the declaration of it being their main home, and again for how long would it need to let to not be considered trivial. Letting it out on an AST minimum 6 months would mean it can’t be their home, but a short break???

but. leaving the main home and then letting it does, by definition, mean it ceases to be your residence as it is now the tenant's residence.

If it actually becomes a tenant's residence then yes, but my one week holiday let in July isn't going to be my residence for that week.

filbertfox

sheramber said:

Will it be a holiday let, airb&b  etc?

It will be let via a letting agent that will organise cleaning etc.we do need to have insurance to cover the guests and ourselves. 

silvercar

Bookworm105 said:

silvercar said:

Grumpy_chap said:

silvercar said:

filbertfox said:

lincroft1710 said:

By "most of the time" I presume you mean "all the time, other than holidays or visiting friends/relatives".


As soon as the money changes hands (and providing you are moving or have moved out) you will cease to have 2 homes and should inform your Welsh council of the Welsh home being your only and full time home.


The Welsh home will be subject to CGT when you sell but the amount will be subject to whether you sell (e.g.) in 2 years or 20 years time. 

By 'most of the time' we do intend to let out the property in the 2 month summer season when we are away on holiday.would that have any impact on Council tax or CG tax?

Plenty of advice online about that, as Wimbledon fortnight attracts people letting lucratively for 2 weeks a year eg https://www.allinaccountancy.co.uk/post/wimbledon-home-renters-warned-about-tax-liability

No mention of CGT, so I wonder if it still considered your main home during that time, certainly it fulfils the criteria of address used for doctors/ employers/ hmrc etc and you won’t have another home at that time.  

Is there a difference between 2 weeks and 2 months?
Where would be the cut-off?

It’s an interesting question, clearly people don’t have a non resident time when they go on holiday for 2 weeks or more, or even backpacking or taking a long cruise etc. But CGT residence exemption is based on where your main place of residence is, so if you are away on holiday your residence doesn’t change. Same for people with 2 properties, if their main home (as declared to hmrc) is let out while they take a break in their second home, does that negate the declaration of it being their main home, and again for how long would it need to let to not be considered trivial. Letting it out on an AST minimum 6 months would mean it can’t be their home, but a short break???

being away on holiday does not stop it being your main home
owning more than one property and spending time in the holiday home does not stop the main home being the main home

but. leaving the main home and then letting it does, by definition, mean it ceases to be your residence as it is now the tenant's residence.

I feel we are going round in circles here. In all the articles on people renting out their Wimbledon homes, there is never any mention of CGT liability on the 2 weeks every year that the residents do the same. That’s around 4% of the year. Some of those owners could be sitting on gains of hundreds of thousands and ~4% of that could be well over the CGT allowance.