Nomination of a main residence - 2 year rule.

I am unsure of the two year rule around if you have more than one residence at the same time for main residence relief. I’ve read on here that nomination of a main residence for main residence relief, needs to be made within two years of a change. However, on another website it states that: It is usually necessary for a main residence nomination to be made within two years of a change in the combination of your residences. However, if all but one of your residences has a negligible capital value (for example, a rented property), then the two-year time limit does not apply. Can you please clarify the two year time limit?

I would still like to know the answer to my question on if the 2 year time limit for nomination of a main residence does not apply when all but one of someone's residences has a negligible capital value (for example, a rented property). Can anyone from HMRC Admin please help?

Hi Gram-UK,
Please refer to guidance at:
CG64495 - Private residence relief: only or main residence: two or more residences: time limit for nominating
and,
CG64500 - Private residence relief: only or main residence: two or more residences: late nominations
Thank you.

Thank you HMRC Admin 21 for your reply, the information in CG64500 is similar to my situation. I jointly own one property with my wife as tenants in common. In 2007 I went to work away on a temporary contract and I rented a work accommodation property where I stayed during the week and returned home to stay on weekends. I later took on another work contract and continued to rent a work accommodation property where I again stayed during the week and returned home on weekends. Around 2010 my wife and I decided to separate, I continued to work away and rent a work accommodation property though I did still return home on weekends to stay in the property my wife and I jointly own, though this gradually became less frequent. I retired at the end of 2021, returned to my home area and have rented another property since then. During these years away I was not aware at all about nominating a property as a main residence and was only made aware of this recently. My wife has continued to live in the property we jointly own with my agreement, we separated amicably and we never had a court order or any legal documentation for our separation. she is now considering selling the property and I would receive around 50% of the value. If the house my wife and I own is sold, will I be able to name that property as my main residence and not be liable to pay any capital gains tax? I have only ever owned one property and the properties I have lived in since our separation have all been rented properties where I could not make any capital gain.

Hi Gram-UK,
A nomination can only be backdated for 2 years so it is possible that capital gains will be due on your share. For a more detailed reply you will need to contact us direct on 0300 200 3310.
Thank you.

Thank you for your reply HMRC Admin 21. I have read (on another reliable web site) that in the case of if all but one residence has a negligible capital value (for example, a rented property), then the two-year nomination time limit does not apply. That appears to suggest that I can still nominate my main residence either now or even when the property I own is being sold. Can you clarify around that? If not I will telephone as you suggest.

Hi
As we cannot comment on matters from non gov.uk websites you may want to call as suggested.

Hi HMRC Admin 10, Thank you for your reply, I would still prefer to communicate in writing rather than by telephone for the moment if that is OK, do you have a contact e-mail address? If not I hope you can answer on here, The information I read refers to the HMRC guidance on CG64500. This HMRC guidance explains that a late nomination is allowed for a period of time, provided that all but one of their residencies during that period had a negligible capital value such as a pay to rent residence. In the final paragraph of this guidance, it states: In practice an individual would not normally be aware of the need for a nomination until a residence was sold and a computation of the gain accruing submitted. So the time limit for making a nomination under ESC D21 was normally extended for a reasonable period after the computation had been submitted and the need for a nomination explained. Does this mean that in practice, if an individual was not aware of the need for a nomination, a nomination for a main residence could possibly be made within a reasonable time AFTER a property has been sold?

Hi Gram-UK

We dont use email for correspondence. you can apply under ESC D21 as each case is looked at in its own merit as you would need to give a breakdown/reasons for the late nomination.
This would be taken into account to confirm if your claim is allowed. Any claim should be made in writing and sent to
HMRC
PAYE & Self Assessment
BX9 1AS

Thank you

Hi, not a HMRC Admin but ESC D21 only applies to notices (nominating a residence) given prior to 6th April 2020 so could not apply here.

Hi HMRC Admin, the comment added by member BellaBoo appears to contradict the earlier reply from HMRC Admin5. Can you please clarify?

Hi,
Please refer to:
CG64495 - Private residence relief: only or main residence: two or more residences: time limit for nominating
Thankyou.

Dear HMRC admin8, whilst I appreciate your reply, unfortunately I did not find it very helpful. HMRC admin 5 had previously answered my question stating that I could apply for a late nomination under ESC D21 as each case is looked at in its own merit. At that point I was quite satisfied with the answer given, however, member BellaBoo later commented that ESCD21 only applies to notices (nominating a residence) given prior to 6th April 2020 so I could not apply under ESCD21. This contradicts the answer given by HMRC admin 5 so I asked for clarification on this. I have looked at the guidance and example in CG64495 but this does not really answer my question as I have only ever owned one property which I still own a 50% share, I live in another property in which I pay to rent as a tenant. I have never nominated a main residence as I was not made aware of this until recently. So if I may just ask for clarification again, was HMRC admin 5 correct in advising that a late application can be made and that each case is looked at in its own merit?

Hi
As per Private residence relief: only or main residence: two or more residences: late nominations, ESC21 still applies it has just changed name for nominations made after 06/04/20.

Thank you HMRC Admin 10, your answer is very helpful to me.