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Posted Fri, 22 Jul 2022 09:08:40 GMT by andy sutton
Hi, I am trying to work out the CGT on the sale of a second home but am receiving conflicting advice. Some sites state the 9 months is added to ownership, others to the period of occupation. This makes a big difference as if added to the ownership period it decreases the percentage you are allowed to deduct. Can you please let me know do I add the 9 months to period of ownership OR period of occupation. Thank you
Posted Sun, 24 Jul 2022 15:01:44 GMT by EISman
If the property is a second home, no relief is due unless you elected for it to be treated as your main residence at some point during the period of ownership. Such an election must be made and submitted to HMRC within 2 years of acquisition of the second home, or within 2 years of a subsequent change in a combination of two or more residences. Once validly made, you can revoke the election at any later point. You lose relief on your actual main residence for the period for which the second property is elected as your main residence. If a valid election was made within the relevant time limit, you will get relief for the period for which the election operated, plus the last nine months of (actual) ownership. You do not add the nine months to the period of ownership.
Posted Mon, 25 Jul 2022 13:55:07 GMT by andy sutton
Thank you. The property was bought and lived in by us as a main residence for 6 years, but turned into a "let to buy" property as we were unable to sell it in order to purchase a new home. 15 years later we sold it. This was our main home for 6 years before we rented it out. Does the PRR get added to this period (i.e. 6 years 9 months) or to the period we owned it (i.e. 15 years 9 months)? We never moved back into it before it was sold. Thanks for any help.
Posted Tue, 26 Jul 2022 09:35:19 GMT by HMRC Admin 17

andy sutton ,
It gets added to the period you lived in it   .

Thank you.
Posted Tue, 26 Jul 2022 10:07:17 GMT by HMRC Admin 19

The nine months is added to your occupation of the property. Further guidance is available here:

Private Residence Relief (Self Assessment helpsheet HS283)

Thank you.

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