nomination of main residence

Hi HMRC, I just want to ask if  I have not nominated my main residence, how do you determine which one is my main residence. Where I can check the questions of facts on your website? Many thanks!

Hi,

It is ultimately up to you to determine which one is your main residence. You can see further guidance here:

CG64485 - Private residence relief: only or main residence: two or more residences: right of nomination

Thank you.

Hi HMRC Administrator, Most grateful for your advice on the following - (1) How can I make a notice under s222(5)TCGA92 to nominate my main residence? I understand that there is no prescribed form for this purpose. Who should I write to and in what format? (2) If there is no change in my condition after the nomination of main residence, do I need to make the notice again two years after the nomination? (3) I newly became a UK tax resident after moving to the UK from Hong Kong last year but I am still holding a property which I bought in 2004 and used as my main residence over the years. This has not been let out and this is the place where I stay whenever I return occasionally to Hong Kong. Do I need to satisfy the days count test in order to nominate this property as my main residence ? (4) I have not kept all the utilities bills/bank statements with that main address in Hong Kong for the whole period since its acquisition. Would it be sufficient for me to provide such letters in recent months as documentary proof? I honestly have lived in this place over the years and I do not have any other alternative residence in the city before coming to the UK. Thank you.

Hi,
You will need to write in to HMRC, PAYE & Self Assessment BX9 1AS and state that you are making a claim under S222(5) TCGA 1992.
You need to confirm the address you are nominating and the date from which it applies - please note this cannot be more than 2 years unless exceptional circumstances apply.
www.gov.uk/hmrc-internal-manuals/capital-gains-manual/cg64520
Thank you.

Thank you HMRC Administrator. For my question (2) above, is it true that a nomination made would continue to stand unless there is change in condition, such as a change in residence? Most grateful if you would also address questions (3) and (4) above regarding day count test and the requirement for documentary evidence in support of a private residence relief claim. Many thanks.

Hi,

If there is no change in circumstances you do not need to submit a new nomination after 2 years.

You will only do this if there is another property purchase.

You do not need to meet the count test or provide documentary evidence once you have made the nomination.

Thank you.

Hi HMRC administrator, I am a BNO hong konger with non-UK domicile status. I acquired the BNO visa in April this year. I have a jointly owned property (my mother 50% and me 50%) in Hong Kong. We bought the property in 2005. However a room in this property has been rented out (the rent of this room is around one-third of the rent of whole property ). My mother and I have accommodated in this property in Hong Kong. I will stay in this place whenever I return to Hong Kong from UK occasionally. Moreover I bought another property in Taiwan in 2018, which is solely owned by me. I have no property in UK. 1. In my case, may I nominate the jointly owned property in Hong Kong as my main residence? 2. As I have a non-UK domicile status, do I need to pay Capital Gain Tax if I sell my property in Taiwan in the future ? Thank you.

Hi HMRC administrator, Supplementary information for the above case: The property in Taiwan has not been rented out. I will stay there occasionally whenever I visit Taiwan. So with non-UK domicile status, do I need to pay CGT if I sell it in the future? Thank you.

Hi Noelgigi,

You will need to confirm in writing, which property you wish to be considered your main residence for capital gains tax purposes.  
If you are resident in the UK, when you dispose of a foreign residential property, you need to declare any gains arising from the disposal on a self assessment tax return.
 If you choose to use the remittance basis, then this would need to be declared on a self assessment tax return in the residence section.  
You can find guidance on the remittance basis here Residence, domicile and the remittance basis: RDR1

Thank you

Dear Administrator, Thanks much for your reply. (1) I can confirm one of the overseas residences that I have mentioned as my main residence for exemption of CGT by writing. (2) As a UK resident and a non-UK domicile, I need to declare the gain arising from the disposal of my second residence (foreign property). But if I choose to use remittance basis and do not remit the gain in the tax year in which the gain is arisen, I don't need to pay any UK tax on the gain. Do I get both points correctly ? Thank you.

Hi Noelgigi,
If you are resident in the UK at the time of disposal of the property and elect to use the remittance basis, you would need to complete a Self Assessment Tax return.   
To declare all your UK income in the residence section, also declare the type of income / gain not being remitted to the UK.
You may find that if you remit the gains from the disposal to the UK in a future tax year, you may have Capital Gains Tax to pay in the year you remit the gain to the UK.
Thank you. 

 

Dear Administrator Thanks for your reply. If I use remittance basis in this tax year and have gain by disposal of foreign property this year. I don't remit the foreign gain generated this year to the UK in this tax year. In the next tax year, I use arising basis and remit the foreign gain generated in the previous tax year to the UK. (1) I need to pay the tax for the foreign gain generated in the previous tax year. Is that correct ? (2) If so, if I use arising basis in the next tax year, do I have personal allowance (12570 pounds) for the tax on foreign gain generated in the previous tax year? Thank you

Dear Administrator (1) If I nominate an overseas property as a main residence, I have a period of two years from the date on which a change in a combination of residence occurred. As I am a BNO hong konger and acquired the BNO visa just in April 2023 (this year), is the clock restarted from the date on which I acquired the BNO visa and can make a nomination in a further two years from April 2023? (2) I have accommodated in my Hong Kong residence for 13 years before acquiring the BNO visa this year and nominating the property in Hong Kong as my main residence. For the previous 13-year period before nomination, do I get Private Residence Relief on capital gain tax? (3)If I nominate an overseas property as a main residence, (a) do I need to live in it for a certain period of time in a tax year? (b) If we nominate as a couple, do both my husband and I need to live in it for a certain period of time or just either one of us can do? Thank you

Hi Noelgigi,
Yes the nomination needs to be in writing.
If you are claiming the remittance basis, you will not declare the sale of the property if you are not remitting any of the income to the UK.
Thank you. 

 

Dear Administrator, Thanks for your reply. However, it seems that your answers are irrelevant to my questions. Would you please kindly advise me the following three questions as I can't find the information from the official website. (1) If I nominate an overseas property as a main residence which was bought in 2005 and I acquired the BNO visa just in April 2023 this year, can I make a nomination in a further two years from April 2023 to April2025? (2) I have accommodated in my Hong Kong residence for 13 years before acquiring the BNO visa this year. For the 13-year period before nomination of main residence, do I get Private Residence Relief on capital gain tax? (3) If I nominate an overseas property as a main residence (as a couple ) Do I need to live in it for a certain period of time in each tax year ? Do both my husband and I need to live in it for a certain period of time or just either one of us can do? Thank you

@Noelgigi I'm not HMRC and can't see your most recent post (just the one before) but to help answer some of your points... The 2 year time limit starts from when you acquire any particular mix of properties. So the clock only starts if a residence (you don't need to own a property for it to be your residence btw) if acquired or disposed of. Because the property mix changes at that point. If you don't make an election within the 2 years then it will be a question of fact (not choice). It involves looking at things like where someone would expect to find you, where you maintain your social life and hobbies and so forth. A married couple can only have 1 main residence for CGT. It would also only be your main residence from the time you elected it as your main residence unless you have actually lived in it as your main residence. So if you didn't live in it for the 13 years then elected it, PRR isn't going to cover those 13 years.

Can someone from HMRC Administrator give me some reliable information on below questions. What Bella answered seems unreasonable. How can I nominate my main residence before acquiring the BNO visa? I couldn't even come to the UK. May someone from HMRC help me answer the following questions please ? (1) If I nominate an overseas property as a main residence which was bought in 2005 and I acquired the BNO visa just in April 2023 this year, can I make a nomination in a further two years from April 2023 to April 2025? I couldn't nominate before acquiring the BNO visa. (2) I have accommodated in my Hong Kong residence for 13 years before acquiring the BNO visa this year. For the 13-year period before nomination of main residence, do I get Private Residence Relief on capital gain tax? (3) Before acquiring BNO visa, I have accommodated in the residence in Hong Kong. After moving to the UK and living the UK, if I nominate an overseas property as main residence (as a couple ) (a) Do I need to return to Hong Kong to live in it for a certain period of time in a tax year? (b) Do both my husband and I need to return to Hong Kong to live in it for a certain period of time or just either one of us can do? Thank you

Thanks for your help so far. I understand it is difficult to answer case specific questions here. I would be grateful if you could provide me an enquiry telephone no so that I can seek advise from HMRC for my specific case. Thank you

Hi Noelgigi

Yes.  
If in 2022/23, you sold a foreign residential property and used the remittance basis to not pay tax on the gain, you report the gain that you were not remitting to the UK on SA109 in the remittance section.  
If in another tax year, say 2025/26, you remit the gain to the UK, then you are taxable on the gain in 25/26 and you would declare this in a self assessment tax return.

Thank you

Hi Noelgigi,

You can see guidance here:

CG64485 - Private residence relief: only or main residence: two or more residences: right of nomination

Thank you.