How Long to Move into House / CGT


M

Mikeww

This is the scenario...

Someone owns *no* property, and the person is currently living at
their parents house.

The person then does buy a house with the intention of moving into the
house which they have just bought, and the house becoming their
primary residence.

How long does the person have to move into the house before there
might be CGT tax implications upon resale? If the person didn't move
into the house for 4 weeks after purchase, then I'd guess there
wouldn't be a problem. Though if the person didn't move in for 3
years, then I expect the Inland Revenue would say it wasn't always the
primary residence (even though the person owned no other property).
 
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J

Jon Griffey

Mikeww said:
This is the scenario...

Someone owns *no* property, and the person is currently living at
their parents house.

The person then does buy a house with the intention of moving into the
house which they have just bought, and the house becoming their
primary residence.

How long does the person have to move into the house before there
might be CGT tax implications upon resale? If the person didn't move
into the house for 4 weeks after purchase, then I'd guess there
wouldn't be a problem. Though if the person didn't move in for 3
years, then I expect the Inland Revenue would say it wasn't always the
primary residence (even though the person owned no other property).
This can get complicated.

In order to stand any chance of qualifying for any private residence
exemption, it is important that at some point the individual does
actually move in and use it as their PPR. Mere intention to reside
there will not usually do.

Once it is the PPR the final 36 months should qualify for exemption.

There is some info at http://www.inlandrevenue.gov.uk/pdfs/cgt1_4.htm
--
Jon Griffey FCCA ATII
Hackett Griffey
Chartered Certified Accountants & Registered Auditors
2 Mill Road, Haverhill, Suffolk, CB9 8BD

Tel (01440) 762024

www.griffey.demon.co.uk

See website for disclaimers
 
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T

Troy Steadman

This is the scenario...
Unless there are video cameras in the area being archived by the Inland
Revenue I might have thought (but strenuously deny thinking!) that
this is the sort of "grey area" that most accounting historians would
gloss over when, years from now, it becomes important. Get on the
electoral register, pay the gas bills, isn't that what they say?



--
 

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